India’s LPG Cooking Gas Subsidy Reform

Lessons for policymakers in reducing costs and building acceptance for reform

This publication discusses lessons and insights from MSC’s comprehensive evaluation studies on major liquefied petroleum gas (LPG) subsidy programs including PAHAL (DBTL) and PMUY. It summarizes India’s reforms to streamline, digitize, and transform cooking gas subsidy from an in-kind to a cash transfer program. The publication also highlights key lessons for policymakers to reduce the government’s subsidy burden. It builds on the government to public (G2P) digitization framework and expands on the importance of institutional and ecosystem readiness and the usage journey of recipients for successful reforms.

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By Caroline Pulver, Arshi Aadil, Anurodh Giri , Mitul Thapliyal