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
Rajnath Singh
India Approves ₹2.38 Lakh Crore Defence Procurement, Focus on S-400 Triumf, Drones and Dhanush Guns
HEbIIxKb0AAv-CR-2
Who Is Shambhavi Tiwari? Uttarakhand’s UPSC Rank 46 Achiever Meets DGP Deepam Seth
SAIL
Parliamentary Panel Asks Steel Authority of India Ltd (SAIL) to Improve Revenue Realisation and Market Competitiveness
MP: CM Mohan Yadav Reaches Chhindwara Directly from Delhi, Meets Families of Road Accident Victims
MP: CM Mohan Yadav Reaches Chhindwara Directly from Delhi, Meets Families of Road Accident Victims
Manoj Sethi Tenure Extension
Kerala Tops IAS Vacancy Rate as North Indian States Face Acute IAS and IPS Officer Shortage
CM Yogi Adityanath
UP: Yogi Inaugurates 71st STPI Centre in Gorakhpur, Says Technology Can Accelerate Development
Ministry of Defence Signs ₹858 Crore Defence Deals for Tunguska Missile Systems and P-8I Aircraft Maintenance
Ministry of Defence Signs ₹858 Crore Defence Deals for Tunguska Missile Systems and P-8I Aircraft Maintenance
Bihar: Rural India’s First Startup ‘Kabad Mandi’ Helps Siwan Residents Earn from Household Waste
Bihar: Rural India’s First Startup ‘Kabad Mandi’ Helps Siwan Residents Earn from Household Waste
ADVERTISEMENT
ADVERTISEMENT
Videos
Ajay Choudhary IPS
From IIT to IPS: Ajay Choudhary on AI, Policing & the Future of Law Enforcement
Tilotama Verma IPS
How Tilotama Varma Became UP’s First Woman IPS Officer to Win the President’s Gallantry Medal
WhatsApp Image 2026-03-19 at 6.17
How Surinder Choudhary Uses Long-Distance Running to Stay Mentally Strong in a High-Pressure Police Career
ADVERTISEMENT
UPSC Stories
MAYANK PUROHIT
He Quit His Job, Faced Failure, and Came Back Stronger: Mayank Purohit’s AIR 33 Story | Exclusive
From a small Rajasthan town to AIR 33 in UPSC CSE 2025, Mayank Purohit’s journey blends strategy, setbacks,...
WhatsApp Image 2026-03-26 at 2.05
A Grandfather’s Inspiration, A Granddaughter’s AIR 46: Shambhavi Tiwari’s UPSC Story | Exclusive
Raised by grandparents in Pantnagar, Shambhavi Tiwari turned early failures into AIR 46 in UPSC CSE 2025...
Nitish Kumar UPSC CSE 2025
From Being Carried by His Mother to Cracking UPSC: Nitish Kumar Secures AIR 847
Nitish Kumar’s UPSC journey to AIR 847 is a story of resilience, disability, and a mother’s sacrifice...
CSR NEWS
ECIL
ECIL Completes CSR Project by Handing Over Retaining Wall at Rastriya Vidya Kendra, Telangana
ECIL Enhances Student Safety and School Infrastructure in Medchal-Malkajgiri District Through Corporate...
ntpc
NTPC WR-I Launches ₹7.64 Crore CSR Project to Renovate IPD Blocks at N.M. Wadia Hospital, Solapur
Renovation of Buildings A, B, and Annex to Strengthen Healthcare Infrastructure, Improve Patient Care,...
AAI
AAI Provides ₹12.29 Crore CSR Support to Balasaheb Deoras Rugnalay in Pune for Healthcare Expansion
Funding to build new pathology lab and Ayurveda–Panchakarma departments to strengthen community healthcare...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Rajnath Singh
India Approves ₹2.38 Lakh Crore Defence Procurement, Focus on S-400 Triumf, Drones and Dhanush Guns
HEbIIxKb0AAv-CR-2
Who Is Shambhavi Tiwari? Uttarakhand’s UPSC Rank 46 Achiever Meets DGP Deepam Seth
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Ajay Choudhary IPS
Tilotama Verma IPS
WhatsApp Image 2026-03-19 at 6.17
ADVERTISEMENT
ADVERTISEMENT