Kerosene has been continued as a subsidised fuel to provide affordable cooking and illumination to households for the last 60 years. However, the subsidy program in its current form is marred by high levels of leakage in the distribution of subsidized kerosene and may not be the most efficient use of fiscal resources.  This report aims to find out the best ways of rationalizing kerosene subsidy to improve the government effectiveness as well as provide the maximum benefit to the households spending on the fuel.

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