Power supply quality important for a cut in kerosene to electrified households: Pradhan

Centre has received proposal to not provide subsidised kerosene to households which have electricity connection according to 2011 census

Petroleum Minister Dharmendra Pradhan (pictured) said power availability was an important point in deciding whether subsidised kerosene should be supplied to such households.

“States should slowly decrease the dependence on kerosene. One basis (for such a move) is that all people who have got electricity connections at their homes should not be given kerosene,” he said at Vivekanada Urja Utsav, an annual energy conference in New Delhi. However, he said, one should also check the availability of supply.

Kerosene is used by rural and urban poor for both lighting and cooking. Stressing the need for reducing the subsidy on the fuel, Pradhan said there should be a demarcation line for it.

Under current policy, the Union government reduces the quota of kerosene sold through the Public Distribution System in proportion to domestic gas penetration in a state. This is done on the assumption that consumers move from kerosene to LPG for cooking.

The minister agreed the government had not passed on all the benefits of the steep decrease in global oil prices to the consumer by reducing that of diesel. “We have passed on the benefits till the point it helps neutralising the inflation,” the minister said.
 

In order to drive home his point, he said if parents were able to save some money in the family, they use it to purchase jewelry for daughter’s wedding in future. “So if the government is saving some money for government schemes – after passing significant benefits to the consumer – isn’t it for the reform of the economy? Shall we analyse our economy with the western standards only?” he said.