Gender and Fossil Fuel Subsidy Reform in Bangladesh
Summary
The report finds that kerosene subsidies in Bangladesh are largely ineffective, as official price cuts are not passed to consumers and many poor households remain unaware of the subsidies. While women are primarily exposed to the health risks of kerosene and biomass cooking, men dominate energy purchasing and decision-making. The study suggests that instead of reforming the kerosene subsidy, the government should shift support toward clean energy alternatives like solar PV and grid electricity, which 69% of households believe would most benefit women.
Key insights
- Kerosene subsidies in Bangladesh are ineffective because official price reductions are not passed to consumers, and there is widespread lack of awareness among the poor. A 2016 price cut from BDT 68 to 65 per litre was not reflected in retail prices, which averaged BDT 77 per litre, approximately 14% higher than the official price. Furthermore, 95% of surveyed households were unaware of the subsidy and over 80% did not know the official price.
- Men hold primary control over energy procurement and decision-making, despite women being the primary users of energy for cooking. Men are responsible for purchasing kerosene in more than 94% of households. Decisions regarding energy sources for lighting and cooking are made solely by the husband or father in 46% and 39% of households, respectively.
- Women face disproportionate exposure to indoor air pollution due to their role as primary cooks, spending an average of 80 minutes daily on cooking activities. While 99% of households expressed a desire to switch from kerosene to electricity, awareness of the specific health impacts of kerosene remains low.
- Hypothetical kerosene price increases would likely lead households to reduce food expenditure, potentially increasing the vulnerability of women and girls. In the event of a 50% price increase, 67% of households would reduce kerosene use and expenditure on other goods, such as food, while increasing income-generating activities (IGAs).
- Access to electricity is perceived as the most beneficial service for women, with 45% of women not currently in income-generating activities stating they would start an IGA if they had access to grid or solar electricity.
- Regression analysis indicates that while female students study less on average than males, they are less sensitive to kerosene price increases in terms of reduced study and leisure time.
- The kerosene supply chain is characterized by high profit margins for retail sellers and inefficiencies. Retailers enjoy the highest profit margin (56–65% of the markup price), while depots have the lowest (16-18%).
Cite the original document
- APA
- Chowdhury, T. T., Merrill, L., Sharma, S., Beaton, C., & Laan, T. (2020). Gender and Fossil Fuel Subsidy Reform in Bangladesh. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-bangladesh.pdf
- Chicago
- Chowdhury, Tahreen Tahrima, Laura Merrill, Shruti Sharma, Christopher Beaton, and Tara Laan. Gender and Fossil Fuel Subsidy Reform in Bangladesh. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-bangladesh.pdf.
- Wikipedia
- {{cite report |last1=Chowdhury |first1=Tahreen Tahrima |last2=Merrill |first2=Laura |last3=Sharma |first3=Shruti |last4=Beaton |first4=Christopher |last5=Laan |first5=Tara |title=Gender and Fossil Fuel Subsidy Reform in Bangladesh |publisher=International Institute for Sustainable Development |date=February 2020 |url=https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-bangladesh.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{chowdhury2020gender, author = {Chowdhury, Tahreen Tahrima and Merrill, Laura and Sharma, Shruti and Beaton, Christopher and Laan, Tara}, title = {{Gender and Fossil Fuel Subsidy Reform in Bangladesh}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = feb, url = {https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-bangladesh.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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