ISSN (Online) - 2349-8846

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A Rejoinder on LPG Subsidies

Subsidies for Whom?

Using data from the Indian Human Development Survey 2004-05, this article shows that with the change in LPG pricing, neither the benefi ciaries of the current LPG subsidy nor the poorest households are the ones to be affected. The larger agenda must be a multi-pronged policy that promotes improved cooking stoves and cleaner fuels, provides specifi c incentives for poor households to be able to make the switch, and improves LPG distribution networks in order to expand clean fuel use in the country.

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