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
Backdoor Privatisation
State Bank of India (SBI) Overtakes TCS to Become Fourth Most Valuable Company After Record Q3FY26 Profits
Kanpur Lucknow Expressway startup corridor
MP Approves ₹626 Crore Land Compensation for Indore-Ujjain Green Field 4-Lane to Boost Travel and Tourism
MP Tourism
Madhya Pradesh Trains Over 50,000 Women in Hospitality to Boost Tourism and Local Employment
cm dhami
Uttarakhand Cabinet Approves Anti-Drug Task Force, Forest Worker Wages, ESI Health Reforms, and Prison Law Amendments
haridwarruddki
Uttarakhand Completes Public Consultation for Haridwar-Rudki Mega Plan 2041 Under AMRUT 1.0
UP Budget 2026-27
UP Budget 2026: Yogi Govt Allocates ₹66,000 Crore for Roads, Bridges, Expressways and Urban Infrastructure
yogi
UP Panchayat Elections 2026: Yogi Govt Allocates ₹132 Crore for Panchayats in Budget 2026–27 Ahead of Rural Polls
Dr_Baljit_Kaur
Punjab Govt Releases ₹3,806 Crore Under Old Age Pension Scheme in FY 2025–26, Says Dr. Baljit Kaur
ADVERTISEMENT
ADVERTISEMENT
Videos
Akash Verma IAS
The Courage to Begin Again: Akash Verma’s Journey to UPSC AIR 20
WhatsApp Image 2026-02-05 at 6.39
The IAS Officer Who Refused to Let Bastar’s Children Fail Alone | Vinit Nandanwar’s Interview
Vinit Nandanwar
Vinit Nandanwar And The Making Of Bastar's First IAS
ADVERTISEMENT
UPSC Stories
IPS Aryendra Kumar UPSC
‘I Felt Trapped in My Own Mind’: IPS Officer Aryendra Kumar on Anxiety During UPSC Preparation
A candid account of IPS officer Aryendra Kumar’s mental health struggles during UPSC preparation and...
Siddharth Babu UPSC IFS
Calm, Clarity and Rank 15: How Siddharth Babu Cracked UPSC and Joined the IFS
Who is Siddharth Babu? The 2017-batch IFS officer who interpreted for PM Modi on Republic Day and cracked...
IAS Avdhija Gupta UPSC
She Cried, She Learned, She Returned: The Unbreakable UPSC Journey of IAS Avdhija Gupta
From three consecutive Prelims failures to securing AIR 43, IAS Avdhija Gupta’s UPSC CSE-2024 journey...
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
Backdoor Privatisation
State Bank of India (SBI) Overtakes TCS to Become Fourth Most Valuable Company After Record Q3FY26 Profits
Kanpur Lucknow Expressway startup corridor
MP Approves ₹626 Crore Land Compensation for Indore-Ujjain Green Field 4-Lane to Boost Travel and Tourism
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Akash Verma IAS
WhatsApp Image 2026-02-05 at 6.39
Vinit Nandanwar
ADVERTISEMENT
ADVERTISEMENT