Government is planning to reduce the kerosene subsidies.
What is the status of fossil fuels Subsides in India?
In India, fossil fuels receive eleven times the financial support that clean energy sources do.
India is making a lot of progress in cutting subsidies.
Diesel subsidies, have fallen from 37 crore in FY14 to FY17.
LPG subsidies have fallen from 50,327 crore in FY14 to Rs 15,132 crore in FY17.
Kerosene from 30,574 crore to Rs 7,606 crore in the same period.
What are the pros of reduced kerosene subsidies?
Financial burden is reduced largely for the nation.
Government thinks that rational pricing will ensure optimal usage.
This triggers the India’s plan to increase the use of renewable energy.
E.g. Distributing 25.3 crore LED bulbs has reduced energy consumption by 32,896 million KWh.
Some studies shows that subsidising fossil fuels will extracts a health cost many times larger than the subsidiescosts, such costs also can be reduced.
What are the facts need to be considered?
There is a view that, plan for reducing the kerosene subsidy would seriously affects the poor.
Few report shows that use of fire food, kerosene and other low grade fossil fuels are contributing to diseases like respiratory disorders, heart attacks etc.
Since health impacts on the society has high priority, such opinions should be addressed with alternate resources.
