Power, Gender and Fossil-Fuel Subsidy Reform in India

The report examines how the removal of fossil-fuel subsidies for LPG, kerosene, diesel, and electricity affects men and women differently in India. It finds that current subsidies largely fail rural women, who rely heavily on biomass, and that shifting to cash transfers via bank accounts creates barriers for women due to lower financial inclusion. The author argues for gender-responsive budgeting and targeted interventions to prevent women from reverting to dirtier fuels while promoting their empowerment.

• Fossil-fuel subsidies in India have historically provided minimal benefit to rural women, as 66 per cent of the population still relies on biomass for cooking, and a quarter of the population lacks electricity.
• Reform of LPG subsidies is likely to have a small direct impact on poor rural women who do not use it, but will affect wealthier women in urban areas; however, there is a risk that some women may shift back to biomass fuels if prices increase.
• Kerosene subsidy reform would have a small impact on rural women using it for lighting, but a more significant impact on urban women who use it for cooking.
• Direct Benefit Transfer (DBT) schemes for LPG and kerosene are hindered by gender inequality in financial access; only 26.5 per cent of women had formal financial accounts in 2011 compared to 43.7 per cent of men.
• Indirect impacts of diesel subsidy reform primarily affect the poor through increased food prices, which may disproportionately impact women as the primary managers of household food resources.
• Electricity subsidy reform in states like Gujarat and West Bengal has led to increased water prices and reduced access for poor farmers; this heavily impacts women, who make up 65 per cent of the agricultural labour force.
• Indian energy policy and the Twelfth Five-Year Plan largely ignore the energy needs of rural women, specifically regarding the hazards and drudgery of collecting and using biomass fuels.
• Empowering women through access to credit, land, and decision-making power is linked to a higher likelihood of households switching to cleaner cooking fuels.

APA

Merrill, L. (2014). Power, Gender and Fossil-Fuel Subsidy Reform in India. International Institute for Sustainable Development. https://www.iisd.org/gsi/sites/default/files/ffs_india_gender_may_2014.pdf

Chicago

Merrill, Laura. Power, Gender and Fossil-Fuel Subsidy Reform in India. International Institute for Sustainable Development, 2014. https://www.iisd.org/gsi/sites/default/files/ffs_india_gender_may_2014.pdf.

Wikipedia

{{cite report |last1=Merrill |first1=Laura |title=Power, Gender and Fossil-Fuel Subsidy Reform in India |publisher=International Institute for Sustainable Development |date=May 2014 |url=https://www.iisd.org/gsi/sites/default/files/ffs_india_gender_may_2014.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{merrill2014power, author = {Merrill, Laura}, title = {{Power, Gender and Fossil-Fuel Subsidy Reform in India}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = may, url = {https://www.iisd.org/gsi/sites/default/files/ffs_india_gender_may_2014.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }