Govt to provide direct subsidy on kerosene

NEW DELHI: Government today said it planned to provide direct subsidy to beneficiaries of kerosene oil and a pilot project in this regard in Alwar district of Rajasthan was yielding good results.

"Direct subsidy on kerosene is planned in future ... We have to move towards it. It will be done using UID cards... We are benefiting from the pilot project," minister of state for petroleum and natural gas RPN Singh said in the Rajya Sabha.


He said the government had provided subsidy of Rs 1,38,541 crore during 2011-12 and a subsidy burden of Rs 1,89,605 crore on petroleum products was due during the current year.

"The government is bearing a subsidy of Rs 503 per LPG cylinder, a subsidy of Rs 32 on per litre of kerosene, while the loss on diesel suffered by oil marketing companies was Rs 13.64 per litre," he said during Question Hour.

He suggested that subsidy should be reduced and urged members to take the lead in doing away with their LPG quotas.

"A proposal should come from all MPs that they will not take subsidy on their LPG cylinder. This would show the way so that the message goes that the subsidy is meant for the poor," he said, adding that the rich were also taking subsidy which was meant only for the poor and lower middle class.

The minister said a pilot project providing direct subsidy to poor and lower middle class beneficiaries was successfully under implementation in a Tehsil in Alwar district of Rajasthan and the government was benefiting. He said details of the project were yet to be received as it was still on.

To another question, he said there is no plan before the government to supply PDS kerosene to fishermen of Kerala, but said non-PDS kerosene could be provided to Kerala government for fishermen if a demand was made.

Govt to provide direct subsidy on kerosene - Times Of India

What do you guys think of this idea? If i remember correctly Sheila Dixit also proposed a similar scheme. Don't have an update on it. But from the look of it, it seems like a good idea. Almost 39% of kerosene is sold in the black market. So it is necessary to have schemes like this. Should this also be done with food grains. Should BPL families be given monthly allowance for ration, so that they can buy food grains, kerosene and LPG at market price?

^^ Good, as long as there are no loopholes in the UID implementation.
The entire project hinges on the accuracy of UID.

The project depends on when everyone get the UID.