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India is one of the world's largest users of kerosene, most of which is provided at highly subsidized prices and at significant fiscal cost to poor households through the national Public Distribution System.

In late 2016, the Government of India announced that it would permit subsidized kerosene prices to rise by INR 0.25 every two weeks until at March 31, 2017. This short report examines subsidized kerosene consumption data to determine the fiscal impact of this process of price revision.