Kerosene subsidy may go by 2020

The kerosene subsidy is expected to decline by 40% from Rs 7,595 crore in 2016-17 to Rs 4,500 crore this financial year

With the Centre’s flagship energy schemes Pradhan Mantri Ujjwala Yojana (PMUY) and Saubhagya set to achieve their targets in the next two years, the subsidy on kerosene is likely to be phased out by 2020.

“We expect at least 95 per cent penetration (into households) of liquefied petroleum gas through the PMUY and also 100 per cent electrification (pushed by the Saubhagya scheme) to be a reality by 2020. With the consumption of kerosene declining on a daily basis, the aim is to do away with the subsidy by then,” said an official. 

While there could be an increase in the subsidy