In an exclusive conversation with ET Now, Oil Minister Dharmendra Pradhan said that,” subsidy on kerosene will be there for those who are willing to take subsidy through DBT.” Edited Excerpts:
What is the main reason behind the subsidy reduction on kerosene?
When we came to power the subsidy burden on kerosene was around Rs 30,000 crore. In the first year of our government the subsidy burden on kerosene was around Rs 25,600 crore. The projected estimate of subsidy burden in financial year 2017-2018 will be Rs 5,500 crore. The two main reasons for this less subsidy number are — one, the reduction of crude oil price in the international market and, two, we have targeted subsidy only for those who need kerosene.
The two main uses of kerosene are for lighting and cooking. Now, if you go by NSSO Statistics, a sizable section of households in India are electrified and around 75% of household are covered with LPG penetration. In the financial year 2016-2017, the allotment was around 59 lakh crore litre but actual offtake was around 56 lakh crore. We are not cutting a single milliliter of kerosene from the needy area, the poor area. In progressive and affluent states where more electrification and LPG penetration is there like in Kerala, we are gradually cutting kerosene quota. Read More…