Centre getting ready for kerosene subsidy reforms
The government seems to be finally getting ready to bite the bullet on reforming the kerosene subsidy regime.
The challenge, however, will be to get the States on board. The Ministries of Finance and Petroleum & Natural Gas are working on a proposal that will encourage the States to identify beneficiaries and improve targeting of kerosene subsidy by digitising the States’ database.
“Unlike other subsidies such as LPG and food, the problem with the kerosene subsidy is that it is allocated by the States. The Centre does not have much control over it. So it is really up to the States to work on weeding out fake beneficiaries that in turn could lead to significant savings for both oil companies as well as the government — like in the case of cooking gas,” a senior government official told BusinessLine.
An expert committee, under the Joint Secretary in the Ministry for Petroleum & Natural Gas, has also been set up to discuss the plan with the States.