Gender and Fossil Fuel Subsidy Reform in India

The report assesses how India's LPG subsidy schemes, specifically PAHAL (DBTL) and Pradhan Mantri Ujjwala Yojana (PMUY), affect poor women. It finds that while PMUY has increased LPG access and reduced drudgery—saving women an average of one hour per day—significant inefficiencies remain. Many poor households are still left behind due to affordability and distribution barriers, while a large share of consumption subsidies benefit wealthier households. The report recommends improving targeting, reviewing the PMUY loan system to ensure affordability for the poorest, and adopting a more holistic clean cooking strategy.

• The Pradhan Mantri Ujjwala Yojana (PMUY) has increased LPG access for poor women, leading to reduced exposure to indoor air pollution and significant time savings. Women using LPG saved an average of approximately one hour per day compared to those using biomass for cooking and cleaning.
• LPG subsidies have influenced female decision-making power within the household. In 74% of surveyed households, women were the primary decision-makers regarding cooking energy sources, a result likely bolstered by the PMUY scheme's requirement for female beneficiaries.
• The PAHAL (DBTL) consumption subsidy is highly inefficient and poorly targeted, with a significant portion of benefits accruing to high-income households. In 2018, PAHAL subsidies were estimated at INR 2,008 billion, more than eight times the volume of PMUY subsidies, and 48% of surveyed LPG-using households did not hold below the poverty line (BPL) cards.
• Despite the PMUY connection subsidy, many poor households remain dependent on biomass. In the states of Chhattisgarh and Jharkhand, more than half of the surveyed poor households did not use LPG, often due to high refill costs, local unavailability, or unreliable targeting data from the SECC-2011.
• The PMUY loan system for stoves and first refills may hinder energy access for the poorest. Because these loans are repaid through deductions from the DBTL subsidy, the effective price of LPG increases during the payback period, making PMUY recipients more sensitive to price increases.
• LPG adoption in rural areas has shifted the burden of fuel management from women to men. While women typically collect biomass, LPG collection in rural areas is predominantly a male responsibility because cylinders must be collected from distributors rather than delivered to the home.
• Fuel stacking remains common across all income groups, with households using a mix of LPG and fuelwood. On average, surveyed households sourced 45% of their cooking energy from fuelwood and 39% from LPG.

APA

International Institute for Sustainable Development (2019). Gender and Fossil Fuel Subsidy Reform in India. https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-india.pdf

Chicago

International Institute for Sustainable Development. Gender and Fossil Fuel Subsidy Reform in India. 2019. https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-india.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Gender and Fossil Fuel Subsidy Reform in India |date=December 2019 |url=https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-india.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2019gender, author = {{International Institute for Sustainable Development}}, title = {{Gender and Fossil Fuel Subsidy Reform in India}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = dec, url = {https://www.iisd.org/system/files/publications/gender-fossil-fuel-subsidy-reform-india.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }