The rationale for reducing the subsidy on LPG in India

Largely as a result of the government's policy of extending subsidies, the use of Liquefied Petroleum Gases (LPG) and kerosene to meet household cooking energy requirements has increased in the past two decades. Both LPG and kerosene have had to be imported to meet this demand. The fact that LPG is being used to a greater extent in high income households (its distribution is still confined largely to major towns and cities), indicates that the government should reestablish its priorities regarding fuel subsidies. (Author)