Subsidy on kerosene may go by FY21 as fuel consumption shifts to LPG

On a monthly basis, the government has been increasing the price of subsidised kerosene by 25 paise to phase out the subsidy

The government is planning to bring down the allocation of subsidised kerosene that it makes to states to 2 million kiloliters (kl) by 2020-21 and phase out subsidy on the fuel in the same period.

As of September, subsidy on kerosene was as low as Rs 5.48 a litre and at the current level of international crude oil and product prices, the government may be able to do away with subsidy in about 22 months.

The subsidy on kerosene has come down by Rs 18,849 crore in the past five years, from Rs 24,799 crore in 2014-15 to Rs 5,950 crore during