Using “Behavioural Sciences” to Make Consumers “Give It Up” – The Case of LPG Subsidy

• by Ankush Khanna and Lokesh Singh
• Jul 27, 2015
• 1 min
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The PAHAL programme of DBT had achieved remarkable success. However, its ‘Give It Up’ campaign is yet to replicate this success. Our focus note explores this issue.

“The Government of India’s Modified Direct Benefit Transfer (MDBTL) scheme for liquefied petroleum gas (LPG), more popularly known as Pahal, has achieved remarkable success. However, it has not replicated this success, with the ‘Give It Up’ campaign. Despite the fact that the campaign has been running for several months, www.mylpg.in shows that around 1,000,000 LPG customers, or 0.8 per cent of LPG connections, have given up their subsidies as on July 21, 2015. There are clearly huge potential gains for the government, if they are able to motivate customers to give up their LPG subsidies. This, though, requires sincere efforts in terms of communication and process modifications. However, looking at the potential savings these efforts are worthwhile!