Centre Saves Rs 19,000 cr Subsidy On Lower Kerosene Consumption

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(TH)

The Centre has accrued close to Rs 19,000 crore of subsidy savings because of lower kerosene consumption thanks to more cooking gas and electricity connections since financial year 2015-16. “During the current fiscal we expect domestic kerosene consumption to fall to 3.3 million tonnes (mt) as compared to 6.8 mt in 2015-16. The steep fall in consumption has helped save the exchequer close to 19,000 crore,” an official told.

The Ministry of Petroleum and Natural Gas (MoPNG) makes a quarterly allocation of Public Distribution System (PDS) kerosene to States/Union Territories (UTs) only for cooking and lighting purposes. With the country closing in towards nationwide LPG penetration and 100 per cent household electrification, the PDS kerosene allocation to States/UTs is being lowered.

This has resulted in subsidy savings to the Centre and a push towards cleaner fuels for cooking and lighting purposes. Till date, Andhra Pradesh, Haryana and Punjab have declared themselves kerosene-free and do not get any kerosene from the Centre. All Union Territories except Andaman & Nicobar and Lakshadweep have also been declared kerosene-free.

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