International Experiences with LPG Subsidy Reform: Options for Indonesia

With diesel and gasoline reforms implemented in early 2015, the Government of Indonesia is now turning its focus toward liquefied petroleum gas (LPG) subsidies. LPG subsidies in Indonesia today, as with other fossil fuel subsidies, are regressive in nature. Anyone can buy low-cost 3-kg LPG cylinders, so a larger share of benefits tends to be captured by higher-income households, who have more b…