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    You are at:Home » Centre Saves Rs 19,000 cr Subsidy On Lower Kerosene Consumption

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

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    By Aruna Sharma on July 25, 2019 BUSINESS

    (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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    Aruna Sharma

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