ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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A Rejoinder on LPG Subsidies

In our article “Subsidies for Whom? The Case of LPG in India” (EPW, 3 November 2012), we demonstrated convincingly that the distribution of liquefied petroleum gas (LPG) uptake in India is heavily skewed in favour of the urban affluent and argued that the state policy of capping the subsidies to six cylinders per household per year was thus in the right direction. On account of their negligible current usage of LPG, poor households will be largely unaffected by the subsidy cap. Our main recommendations were towards ensuring that poorer households and those in rural areas are increasingly encouraged to switch from the hazardous and polluting solid fuels to cleaner fuels like LPG, and cleaner technologies such as improved cooking stoves.

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