Government Moves Closer To Ending Subsidy On Kerosene

The government has moved further towards putting an end to the subsidy on kerosene, reported The Economic Times. State oil companies have reportedly been asked to raise prices of subsidised kerosene by 25 paise every fortnight until the subsidy is eliminated or a further order is issued.

Subsidised kerosene has been prone to misuse, especially for adulterating diesel. This has contributed significantly to pollution. Swift electrification of villages and the supply of cooking gas connections to poor people over the last three years has, however, led to a fall in the demand for kerosene.

By cutting subsidies, the government is promoting the use of the cleaner liquefied petroleum gas instead.

Delhi and Chandigarh have already become kerosene-free cities. Haryana state has become kerosene-free too, as the supply of the fuel was stopped under the Public Distribution System from 1 April.

Kerosene and cooking gas are the only fuels subsidised currently.