Access and Transition to LPG Cooking Fuel by Households in Rural India: An Assessment of Policy and Action

Abstract

Liquefied petroleum gas (LPG) is the dominant clean cooking fuel in India. Its use is growing at an average of rate of 12 % per annum over the past 30 years, and its cooking application is currently racing at 7 % per annum. It occupies 3 % space in the energy basket of the country and 8 % in the oil and gas space. The 66th round of National Sample Survey reveals that only 11.5 % of households in rural India use LPG as cooking fuel as against 64.5 % in urban India. Census 2011 has put the number at 11.4 and 65 %, respectively. In the Energy Development Index (EDI), devised by the International Energy Agency (IEA), the value for India has declined from 0.295 in 2007 to 0.294 in 2011 and that for modern cooking fuel (Kerosene and LPG) from 0.265 to 0.221. The present study analyzes the trend of household consumption and supply of LPG in conjunction with price. The study assesses the status of accessibility (of LPG and other fuels) and affordability of households for LPG, and analyzes the inter-fuel transition during the last decade. It tries to estimate the unrecovered cost of marketing LPG under the current pricing regime and examines its sustainability. The study estimates the investment required for putting up infrastructure and import facilities. The study uses time-series data pertaining to LPG consumers, quantity consumed, LPG distributors, bottling plants, and capacity. Consumption pattern is linked to macroeconomic aggregates like NNP and meaningful conclusions are drawn. Based on a primary survey, it assesses the pattern of LPG use in Indian rural households.