Kerosene, a widely used fuel in India, especially in the rural areas, has seen a significant transformation in terms of its subsidy. According to the 2011 Census data, a whopping 43% of the rural households in India depended on kerosene as their primary source of light, while only 0.7% used it as a primary cooking fuel. In 2013, the Energy Information Administration reported that India was responsible for 15% of the global kerosene consumption, primarily used for lighting purposes. However, the Indian government has been gradually reducing the subsidy provided for kerosene over the years. In fact, the kerosene subsidy dropped from around Rs 24,700 crores in the financial year 2014-15 to nearly Rs 5,900 crores in 2018-19. The government has been consistently increasing the price of subsidised kerosene every month to discourage its consumption. In the financial year 2019-20, the government further slashed the budget allocated for kerosene subsidy to about Rs 4,500 crores. As per the government's current estimates, the kerosene subsidy for the ongoing financial year would be around Rs 1900 crores.
This topic holds significant importance for those preparing for the IAS Exam .
