Skip to main content

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
Join our WhatsApp Channel
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
ongc
ONGC Launches Urja Bharat Convention Centre in Goa with 3,500+ Capacity Hall and Sustainable MICE Facilities
rec
REC Signs Agreement with RITES to Ensure Quality Checks of Power Transformers Under RDSS 
RITES MECON
RITES Signs MoU with MECON to Jointly Pursue Infrastructure Projects Across India and Global Markets
Odisha govt_resized
Odisha Transfers 2 IAS Officers; Dr Poma Tudu Appointed Additional Secretary
Gujarat-government resized
Gujarat Transfers 28 IAS & 13 GAS Officers; Gaurang Makwana, Prabhav Joshi Among Key Appointments
IPS Officer Malika Garg Appointed Assistant Director at SVPNPA Hyderabad; NIA IG Santosh Rastogi Elevated as ADG
IPS Officer Malika Garg Appointed Assistant Director at SVPNPA Hyderabad; NIA IG Santosh Rastogi Elevated as ADG
Karnataka-govt-announces-state-wide-close-down-for-14-days
Karnataka Transfers 7 IAS Officers; Nakul S S Named CM's Secretary, Yatish R Posted as Deputy Secretary in CMO
ChatGPTImageJul212026at10_48_25A
Who Is GS Rao? Senior IPS Officer Given Additional Charge as Tripura DGP After Anurag Dhankar's Death
ADVERTISEMENT
ADVERTISEMENT
Videos
Piyusha Jagtap
How IFS Piyusha Jagtap Is Changing Conservation Through Stories, Communities and Compassion | Video Interview
Pulkit Khare
How Uttar Pradesh Is Preparing Its Youth for the AI Revolution
Haryana Leads India's First AI-Powered Bird Census
Haryana Leads India's First AI-Powered Bird Census
ADVERTISEMENT
UPSC Stories
WhatsApp Image 2026-07-19 at 9.46
Why So Many UPSC Aspirants Fail Despite Studying So Hard
Many UPSC aspirants mistake attending lectures for preparation, but the examination rewards independent...
Sanjay Bagali and Deekshith N UPSC IFS 2025
How Trust, Teamwork and Persistence Helped Two Friends Crack UPSC IFS 2025
Read the inspiring UPSC IFS 2025 success story of Deekshith N (AIR 14) and Sanjay Bagali, whose friendship,...
Athira
She Forgot Her Own Name, Lost the Ability to Walk… Then Became a Doctor and Cracked UPSC with AIR 483
After a devastating accident erased her memories and left her permanently paralysed, Dr Athira Sugathan...
CSR NEWS
WCL
WCL Partners with Narayana Institute Nagpur to Provide Free JEE Coaching Under Project TARASH
WCL signs MoU with Narayana Institute for the 4th batch of Project TARASH, offering expert JEE coaching...
REC Smart Classrooms
REC Limited to Set Up 20 Smart Classrooms in West Bengal Government Schools, Benefiting 1,500+ Students
Under its CSR initiative, REC will establish technology-enabled Smart Classrooms in Alipurduar district...
REC CSR
REC Foundation Signs MoA for RO Water Systems in Delhi Schools, Supporting Healthier Futures for 8,000 Students 
REC Foundation signs MoA with UPSIC to provide safe drinking water facilities, improve hygiene standards...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
ongc
ONGC Launches Urja Bharat Convention Centre in Goa with 3,500+ Capacity Hall and Sustainable MICE Facilities
rec
REC Signs Agreement with RITES to Ensure Quality Checks of Power Transformers Under RDSS 
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Piyusha Jagtap
Pulkit Khare
Haryana Leads India's First AI-Powered Bird Census
ADVERTISEMENT
ADVERTISEMENT