CEEW Finds Only 23% of Rural Households Rely Exclusively on LPG; 50% Use Firewood

Around 73% of rural households reported using LPG in the 90 days covered by the CEEW survey, as per The Economic Times news report. However, only 23% said they used LPG alone for cooking. 

Firewood continues to be widely used. About half of rural households identified it as their main cooking fuel, showing that LPG is often used alongside traditional fuels. 

Delivery Gaps 

Doorstep delivery remains limited in rural areas. Only 47% of LPG users receive their cylinders at home, with refill costs and last-mile delivery among the main constraints identified in the studies. 

Some households also obtain LPG through local shops, roadside dealers, and unauthorised sellers. These informal sources can charge higher prices and are used where formal connections and delivery services are less accessible. 

Cost of Refills 

The cost of a refill is another factor affecting LPG use. At ₹400 for a 14.2 kg cylinder, at least 80% of respondents said they would move to exclusive LPG use. 

The median amount respondents were willing to pay was ₹500. This was below the subsidised PMUY rate of ₹642. CEEW's studies have proposed raising the PMUY subsidy by about ₹200 per cylinder. 

Migrant Households 

Migrant households face separate difficulties in accessing formal LPG connections. Some 79% of migrant LPG users do not have a formal connection, while fewer than 4% are enrolled under PMUY. 

The 2021 policy allowed migrants to use simplified self-declarations for connections. Yet among migrants living in open spaces, 70% depend entirely on solid fuels. 

Informal LPG Purchases 

Migrant users who buy LPG informally pay ₹71 per kg, which is more than 20% above formal rates. In urban informal settlements, 70% of households report exclusive LPG use. 

Among those without formal connections in these settlements, 31% face rejection because they lack address proof. Around 11% pay ₹1,040 through informal channels, against a retail price of ₹803. 

Study Recommendations 

The CEEW studies recommend targeted migrant enrolment drives, smart-meter kiosk pilots and different distributor commissions to improve rural doorstep delivery. 

The findings point to affordability, delivery and access to formal connections as factors behind continued use of solid fuels. 

Read More: Government Keeps PSB Employee PLI Scheme on Hold For 2025-26 Amid Union Concerns! 

Conclusion 

Rural LPG use remains higher than exclusive dependence, as households continue to face refill costs, limited doorstep delivery and access barriers. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.