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
MOU
CPWD and Canara Bank Sign MoU for Residential Staff Quarters Project in Malad West, Mumbai
NLC-INDIA
PESB Recommends PLSS Chaitanya Prakash as Director (Power) of NLC India Limited
Garden Reach Shipbuilders & Engineers Ltd
GRSE Appoints IAS Officer Dr Vijay N. Zade as Government Nominee Director on Board 
Project Saksham
NHAI Introduces Mechanized Drain Cleaning and Automated Pothole Repair Systems for National Highways
IPS Officers
13 AGMUT Cadre Officers Promoted to IPS: President Approves Induction of DANIPS Officers into Indian Police Service
NTPC
Leadership Updates: NTPC Vindhyachal Appoints Kishore Kumar Hota as Executive Director & HOP
GRSE
GRSE Completes Early Refit of Seychelles Coast Guard Ship Zoroaster, Reinforcing India-Seychelles Maritime Ties 
hemant cm
Jharkhand CM Hemant Soren Directs Fast-Track Implementation of Jal Jeevan Mission for 100% Rural Tap Water Coverage
ADVERTISEMENT
ADVERTISEMENT
Videos
Madhukar Kumar Bhagat
How an IRS Officer Spent Five Years Decoding 4,000 Years of Indian Culture
ajay suri
When The Entire Film Crew Was At The Mercy of King Cobra
Manisha Khatri
How IAS Officer Manisha Khatri IS Turning Nashik Kumbh 2027 Into A Digital Mega City
ADVERTISEMENT
UPSC Stories
aayush swami
What Happened in Class 10 Changed His Entire Life:  Aayush Swami's Story Is About More Than UPSC
From a small village in Madhya Pradesh to securing AIR 461 in UPSC CSE 2025, Aayush Swami’s story blends...
Brijesh Parmar RAS
Failed Class 12, Failed BA First Year, Chose Dance, Then Cracked RAS Twice: The Story of Brijesh Parmar
Failed Class 12 and BA first year, pursued professional dance, then cracked RAS twice. Read Brijesh Parmar's...
IFS Akshat Singhal
Cracked UPSC CSE, IFS and Engineering Services: The Inspiring Journey of Akshat Singhal While Balancing a Full-Time Job
Rajasthan's Akshat Singhal Balanced a Demanding Government Job, Multiple UPSC Attempts and Personal Sacrifices...
CSR NEWS
SECL
SECL Launches Model Anganwadi Centre in Bilaspur Under ₹4.72 Crore CSR Push for Early Childhood Education 
Under a larger plan to modernise 200 Anganwadi centres, SECL expands community development efforts with...
NTPL
NTPL Signs ₹2.97 Crore CSR MoU with Gandhigram Rural Institute to Establish Gandhi Museum in Tamil Nadu
Project aims to preserve Mahatma Gandhi’s legacy through education, research, and heritage conservation...
NCL
NCL Signs ₹25 Lakh MoU with Singrauli Administration for Jal Ganga Sanvardhan Abhiyan Water Conservation Project
CSR initiative to build three ponds in Chitrangi block aims to boost groundwater recharge, irrigation...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
MOU
CPWD and Canara Bank Sign MoU for Residential Staff Quarters Project in Malad West, Mumbai
NLC-INDIA
PESB Recommends PLSS Chaitanya Prakash as Director (Power) of NLC India Limited
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Madhukar Kumar Bhagat
ajay suri
Manisha Khatri
ADVERTISEMENT
ADVERTISEMENT