The Economic Survey has said that the proportion of liquefied petroleum gas (LPG) subsidies that goes to the poor, in both rural and urban areas, was low. This finding is bound to provide fuel to the debate on whether the rich should continue to be supplied cooking gas at subsidised rate.

Making a case for containing subsidies through better targeting, the Survey said the reach of subsidies on LPG “is highly unequal amongst the poor and rich in rural and urban area.”