Subsidies to Liquefied Petroleum Gas in India: an overview of recent reforms

Fuel subsidies are a significant fiscal burden in India, costing on average 1.4 per cent of GDP since fiscal year 2008. This paper provides a concise overview of subsidies for liquefied petroleum gas (LPG), which is widely used as a cooking fuel, particularly in urban areas. The paper also describes recent reforms to LPG subsidies and the impacts of those reforms on consumption, subsidy expenditure and distribution and targeting.