https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Petroleum Ministry Proposes New Kerosene Allocation Policy for States

The proposal comes in the wake of declining kerosene demand, as the government has been actively replacing it with cleaner fuel alternatives
Indian Masterminds Stories

The Ministry of Petroleum and Natural Gas has proposed a new policy for the allocation of kerosene oil to states and Union Territories (UTs). A draft of the policy was released on April 7, with the Ministry seeking stakeholder feedback within 15 days. The proposal comes in the wake of declining kerosene demand, as the government has been actively replacing it with cleaner fuel alternatives.

Also Read: Manpower Crisis Hits India’s Aviation Regulators, Nearly Half the Posts Vacant

According to the draft policy, 20 States and UTs may not require kerosene oil allocations anymore due to reduced consumption. The existing policy divides kerosene allocation into two categories:

  1. Public Distribution System (PDS) Subsidized Kerosene for cooking and lighting.
  2. Non-Subsidized Kerosene for specific uses like fisheries, fairs, exhibitions, and emergencies.

However, with the progressive reduction of subsidies since 2016 and the price linkage to international oil rates since 2020, the Ministry believes that a unified allocation system is more appropriate. Under the proposed policy, kerosene will now be allocated under a single category: “PDS SKO Allocation to States/UTs”, applicable for three financial years (2025-26 to 2027-28).

Key Provisions of the Proposed Policy:

  • States/UTs will receive PDS SKO allocations based on the highest quantity lifted in the past three years.
  • Allocations will continue on a quarterly basis, but states cannot carry forward unutilized allocations except in cases of natural calamities or emergencies.
  • States will have flexibility in sub-allocating kerosene for cooking, lighting, or special needs like fisheries and public events based on their requirements.
  • The policy will be reviewed after three years.

Decline in Kerosene Consumption

Kerosene has historically been used for cooking and lighting by ration card holders. However, with the government’s push for LPG through the Pradhan Mantri Ujjwala Yojana (PMUY), kerosene consumption has dropped significantly. According to the Petroleum Planning and Analysis Cell (PPAC), consumption has declined by about 77% between 2021-22 and 2023-24.

The 20 States and UTs identified as not requiring regular annual kerosene allocations include:

  • Andaman and Nicobar Islands, Andhra Pradesh, Chandigarh, Dadra and Nagar Haveli and Daman and Diu, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Lakshadweep, Madhya Pradesh, Nagaland, Puducherry, Punjab, Rajasthan, Telangana, Uttar Pradesh, and Uttarakhand.

The proposed policy aligns with the government’s vision of reducing dependence on polluting fuels while ensuring that states continue to have access to kerosene for essential purposes.

Also Read: Dr Poonam Gupta Appointed Deputy Governor of Reserve Bank of India


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
nitish
Bihar to Introduce Incentive Policy 2026, Plans to Reopen Closed Sugar Mills and Set Up 25 New Units
yadav
MP CM Mohan Yadav Inaugurates ₹48.71 Crore Nanakheda Stadium Upgrade Ahead of 2030 Commonwealth Games
Ruchi Singh
UPSC CSE 2025: Inspector’s Daughter Ruchi Singh Secures AIR 171, Father Set to Salute Her as IPS Officer
omc
OMC Launches 2 Day Cervical Cancer Vaccination Drive for Women Employees Across Head Office and Mining Units
GAIL PSU
GAIL India Appoints Rohit Mathur as Government Nominee Director to Strengthen Energy Governance
NTPC Green
NTPC Green Energy Commissions 91.6 MW Second Phase of Ayana Kadapa Solar Project, Total Capacity Hits 9,292 MW
grse
GRSE Wins Multiple Awards at 15th ICC PSE Conclave 2026, Cmde P.R. Hari Honoured as ‘CMD of the Year’
Mahanagar Gas Limited MGL
Mahanagar Gas Limited Appoints Deepak Gupta as Chairman to Boost CNG, PNG and Clean Energy Initiatives
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2026-03-02 at 10.22
Beno Zephine: India’s First 100% Visually Challenged IFS Officer Who Rewrote the Rules of Diplomacy | EXCLUSIVE
Prajesh Kanta Jena
How IFS Prajesh Kanta Jena Empowered Women & Youth at Palamau Tiger Reserve
WhatsApp Image 2026-02-23 at 12.13
Exclusive | From Ridge to River: Prajesh Kanta Jena’s Community-Led Conservation Drive at Palamau
ADVERTISEMENT
UPSC Stories
WEB THUMBNAIL TEMPLATE -3
3 Attempts, 1 Dream: How Indore’s Ananya Sharma Secured AIR 13 in UPSC CSE 2025 After Two Prelims Failures | Exclusive
Ananya Sharma from Indore secured AIR 13 in UPSC CSE 2025 in her third attempt after failing prelims...
WhatsApp Image 2026-03-09 at 2.31
UPSC 2025 Gujarat Topper: Nisar Dishant Amrutlal’s Four-Attempt Journey to AIR 19 | Exclusive
Born in Mumbai with roots in Kutch, Nisar Dishant Amrutlal secured AIR 19 in UPSC CSE 2025 after four...
UPSC CSE 2025: Patna’s Ujjwal Priyank Bags AIR 10 After Missing Final List Earlier | EXCLUSIVE 
UPSC CSE 2025: Patna’s Ujjwal Priyank Bags AIR 10 After Missing Final List Earlier | EXCLUSIVE 
Patna’s Ujjwal Priyank secured AIR 10 in UPSC CSE 2025 after narrowly missing the final list earlier....
Social Media
One-Horned Rhino Calf
Watch: First One-Horned Rhino Calf of 2026 Takes Birth at Jaldapara National Park, IFS Officer Shares Rare Footage
A newborn one-horned rhinoceros calf was spotted at Jaldapara National Park on January 1, 2026. IFS officer...
venomous banded krait
Rare Night Encounter: IFS Officer Spots Highly Venomous Banded Krait During Forest Patrol, Internet Amazed
An IFS officer’s night patrol video of a highly venomous banded krait has gone viral, highlighting India’s...
elephant rescue Karnataka
Heroic Karnataka Elephant Rescue: How a 28-Hour “Impossible Mission” Became a Triumph of Wildlife Care, IFS Parveen Kaswan Shares Video
A trapped elephant was rescued after 28 hours in Karnataka through a massive, expertly coordinated Forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
nitish
Bihar to Introduce Incentive Policy 2026, Plans to Reopen Closed Sugar Mills and Set Up 25 New Units
yadav
MP CM Mohan Yadav Inaugurates ₹48.71 Crore Nanakheda Stadium Upgrade Ahead of 2030 Commonwealth Games
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2026-03-02 at 10.22
Prajesh Kanta Jena
WhatsApp Image 2026-02-23 at 12.13
ADVERTISEMENT
ADVERTISEMENT