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
CAPFs
93,000+ Vacancies in CAPFs and Assam Rifles: Govt Tells Parliament; CISF Tops List, Resignations Rise 86% in 5 Years
Kerala Chief Minister Pinarayi Vijayan NBCC
NBCC to Develop Marine Eco City in Kochi for Kerala State Housing Board; Phase-I Cost ₹480 Crore
MoEFCC Organizes 2-Day National Workshop to Curb Elephant-Train Collisions; 77 Priority Railway Stretches Identified
MoEFCC Organizes 2-Day National Workshop to Curb Elephant-Train Collisions; 77 Priority Railway Stretches Identified
cm sai Chhattisgarh
Chhattisgarh CM Vishnu Deo Sai Launches Electricity Bill Payment Resolution Scheme 2026; 28.42 Lakh Consumers to Benefit
GAIL PSU Awards 2026
GAIL Wins Multiple Awards at Governance Now 12th PSU Awards 2026 for HR, Finance and Brand Leadership
PMO-building
Central Govt Extends IRPS Pallavi Singh’s Tenure and Appoints IAS Prashant Kumar Mishra as OSD to Minister for Jal Shakti
Gujarat Civic Body Appointment
Jharkhand State Civil Service Officers Inducted into IAS; 15 Officers Join Indian Administrative Service
Manoj Sethi Tenure Extension
CBI DIG Lovely Katiyar, IFoS Deepak Mishra, and IRS Swapna Devireddy Prematurely Repatriated to Parent Cadres
ADVERTISEMENT
ADVERTISEMENT
Videos
beno zephine
India’s First Visually Impaired IFS Officer on Diplomacy, Inclusion and Changing the System
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
ADVERTISEMENT
UPSC Stories
nabiya parvez
UPSC 2025 AIR 29 Nabiya Parvez: From Old Delhi’s DDA Flat to India’s Civil Services
Nabiya Parvez secured AIR 29 in UPSC CSE 2025 after years of struggle, multiple attempts, and self-learning,...
Shubham Singh AIR 21, UPSC CSE 2025
Shubham Singh Turns Final Attempt into AIR 21 | Exclusive 
This IIT Kanpur graduate balanced a government job and preparation to achieve his IAS dream.
eiwueiwueiwuiwuiwueiw
From Interview Rejection to AIR 4: How Bihar’s Raghav Jhunjhunwala Turned His Third UPSC Attempt into Historic Success | Exclusive
Raghav Jhunjhunwala from Muzaffarpur, Bihar, secured AIR 4 in UPSC CSE 2025 in his third attempt after...
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
CAPFs
93,000+ Vacancies in CAPFs and Assam Rifles: Govt Tells Parliament; CISF Tops List, Resignations Rise 86% in 5 Years
Kerala Chief Minister Pinarayi Vijayan NBCC
NBCC to Develop Marine Eco City in Kochi for Kerala State Housing Board; Phase-I Cost ₹480 Crore
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
beno zephine
WhatsApp Image 2026-03-02 at 10.22
Prajesh Kanta Jena
ADVERTISEMENT
ADVERTISEMENT