25 October 2026
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
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Gyanendra Kumar Gangwar
Karnataka Deputy CM DK Shivakumar Sanctions Prosecution of IAS Officer Gyanendra Kumar Gangwar in KPSC Paper Leak Case
BSRTC Where Is My Bus App
Bihar to Launch ‘Where Is My Bus’ App for Online Bus Ticket Booking and Live Tracking
Telangana CS Sanjay Jaju
Telangana Chief Secretary Sanjay Jaju Asks Districts to Enrol More Hospitals Under PM-RAHAT
IPS Officer Vikas Vaibhav (1)
Bihar CM Samrat Choudhary Praises IPS Officer Vikas Vaibhav for Promoting State’s Development
Former Tamil Nadu Chief Secretary Sukavaneshvar
Who Was Sukavaneshvar, Former Tamil Nadu Chief Secretary Who Dies at 82? IAS Officer Held Key Posts in Revenue, Finance and HR&CE
Madhya Pradesh Tendu Leaf Collectors Bonus
Madhya Pradesh CM Mohan Yadav to Distribute ₹22.89 Crore Bonus to Tendu Leaf Collectors
Tomin Thachankary Kerala HC Appeal
Former Kerala DGP Tomin Thachankary Seeks HC Nod to Travel Abroad to Resume UAE Job
Himachal Pradesh IAS Transfers 2026
Himachal IAS Transfers: Four Officers Shifted; Kiran Bhadana Moves to Bilaspur, Rahul Kumar Gets HRTC
ADVERTISEMENT
ADVERTISEMENT
Videos
Gajendra Singh Shekhawat
How India Plans to Boost Tourism, Create Jobs and Ease Overcrowding : Gajendra Singh Shekhawat on the Road to 2047
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
PK Jena
Why Technology Cannot Replace Human Connection in Governance: P.K. Jena
ADVERTISEMENT
UPSC Stories
IA&AS Lokesh Datal
‘Dreams Don’t Change Lives, Daily Habits Do’: IA&AS Officer Lokesh Datal on UPSC and Discipline
IA&AS officer Lokesh Datal shares his UPSC journey, clearing the exam in his fourth attempt, building...
Mavis tak
From Dropping Out of School to Becoming an IPS Officer : How a Father’s Unwavering Support Helped Mavis Tak Achieve Success
For Mavis Tak, becoming an IPS officer once seemed like a distant dream. Despite financial struggles...
Bhikan Rojekar UPSC
He missed MBBS by 1 mark in 2016; Maharashtra’s Bhikan Rojekar secures UPSC AIR 812
Bhikan Rojekar secured AIR 812 in UPSC CSE 2025 in his third attempt. Read how the son of a farm labourer...
CSR NEWS
NLC India CSR Dispensary
NLC India Builds ₹1.23 Crore Dispensary in Tamil Nadu’s Ramanathapuram Under CSR Initiative
Inaugurated on October 17, 2026, the new facility at Sri Ramakrishna Math in Keelanagachi aims to strengthen...
MGL CSR initiative
MGL Donates 30-Seater Hydraulic-Lift Bus to NIEPID Davangere Under MGL Saksham CSR Initiative
Inaugurated by MGL Vice President Sanket Dhotre on October 15, 2026, the accessible bus is expected to...
EIL CSR-
Engineers India Distributes Assistive Devices to 55 Divyangjans in Gurugram Under CSR Initiative
EIL’s CSR initiative provides motorised tricycles, hearing aids, wheelchairs and other aids to promote...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Gyanendra Kumar Gangwar
Karnataka Deputy CM DK Shivakumar Sanctions Prosecution of IAS Officer Gyanendra Kumar Gangwar in KPSC Paper Leak Case
BSRTC Where Is My Bus App
Bihar to Launch ‘Where Is My Bus’ App for Online Bus Ticket Booking and Live Tracking
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Gajendra Singh Shekhawat
Dr Saket Badola IFS
PK Jena
ADVERTISEMENT
ADVERTISEMENT