Government may widen subsidy net to cover all cooking fuels


Government may widen subsidy net to cover all cooking fuels

Government may widen its subsidy net to cover all cooking fuels including piped natural gas and bio-gas along with the existing subsidy on LPG and kerosene. Niti Aayog’s proposal for a comprehensive ‘cooking subsidy’ is being deliberated at the top level and could form part of government’s election manifesto with general elections juts months away.

The move would benefit all consumers besides making it attractive for consumers to switch to alternate cooking fuels. The Aayog had written to ministry of petroleum and natural gas last year to consider introducing a cooking subsidy for all types of cooking fuels through direct benefit transfer instead of LPG and kerosene subsidy.

A senior government official told ET that the nodal ministry has been asked to estimate the financial implication of the proposal to subsidise all kinds of cooking fuels. Government has earmarked Rs 20,000 crore as LPG subsidy and another Rs 4500 crore as kerosene subsidy for 2018-19. Read More

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