Let There Be Light – Direct Benefit Transfer in Kerosene

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.