Let There Be Light – Direct Benefit Transfer in Kerosene

• by Ritesh Rautela, Sandeep Kumar and Sainath Sunil
• Jan 19, 2016
• 1 min
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This focus note traces a qualitative research that MicroSave conducted to assess the consumption pattern and dependence on kerosene in India at the time of the study.

Encouraged by the success of Direct Benefit Transfer in LPG (DBTL), and in response to the loss of 41% (or “leakage”) of kerosene subsidies, the Government of India (GoI) is examining proposals and a suggestion to conduct a pilot-test to replace the kerosene subsidy with a cash transfer or alternative sources of energy. MicroSave conducted a qualitative research to: asses the current consumption pattern and dependence on kerosene; assess consumer preferences for different sources of energy and lighting; assess feasibility of alternate energy fuels; and develop pilot models of potential alternative fuels. Based on consumer experience and preferences for different sources of energy and alternative fuels on six parameters: availability, affordability, product reliability, maintenance /replacement cost, ease of use, and quality of output (light or cooking flame); solar lantern and 5 kg LPG cylinder were suggested as alternative to kerosene for lighting and cooking respectively.