Kerosene subsidy removed via small price hikes over 4 years

New Delhi: India has eliminated subsidy on kerosene through small fortnightly price increases for nearly four years amid low oil prices, enabling savings for the government at a time when it is facing a revenue shortfall, thus raising expectations of a quick end to cooking gas subsidy that’s also being cut gradually.

The government instructed state-run oil companies this month to price kerosene at market rates after regular price revisions obviated the need of subsidy for kerosene sold through public distribution system, according to people familiar with the matter.