Assessing the feasibility of a migration policy from LPG cookers to induction cookers to reduce LPG subsidies

Abstract

Several developing countries have attempted to reduce liquefied petroleum gas (LPG) imports and subsidies by shifting from the use of LPG to electric stoves. In Indonesia, the LPG subsidy reached US$ 4.9 billion and LPG imports increased to 6.3 million tonnes in 2021. Our study aims to analyse the feasibility of an induction cooker program in Indonesia to reduce LPG subsidies. Firstly, we calculated the energy equivalent factor of the induction cooker compared to the LPG cooker. Subsequently, we surveyed 1006 respondents with different electricity connection capacities regarding their monthly LPG consumption and perceptions of induction cookers. We found monthly electricity consumption for the induction cooker to be around 62 kWh to 235 kWh, depending on the customer group. Cooking with the induction cooker has a lower energy cost compared to cooking with the unsubsidised 12 kg LPG cylinder. However, for customers previously using the subsidised 3 kg LPG cylinder, the induction cooker program only reduces energy costs for cooking for the 450 VA customers. The LPG subsidy saving can compensate for the capital costs of switching to induction cooking within three years. Several policy recommendations are discussed based on these findings.