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
India-UK Defence Cooperation
India, UK Explore New Opportunities in Military Training and Defence Technology Collaboration
Indian Army Air Defence Training
Inside the Indian Army's Plan to Train Against Future Drone and Missile Attacks
IIT Ropar Defence Projects
From Autonomous Tanks to Laser Weapons: IIT Ropar Secures ₹120 Crore Army Defence Projects
West Bengal Budget
West Bengal Govt Presents First Full Budget, Announces 1 Lakh Jobs, New Districts and Major Economic Reforms
SCOPE ICF
SCOPE and ICF Host Roundtable on Coaching for National Transformation to Boost Public Sector Leadership
hemant cm
Jharkhand Govt Launches ₹5 Lakh Life Insurance Scheme for 8,500+ Education Workers Under JEPC
Maharashtra govt-logo
Maharashtra Reshuffles 3 IAS Officers; P Velrasu Appointed Additional Metropolitan Commissioner of MMRDA
NLC India Indian Oil
NLC India and Indian Oil Sign MoU for Large-Scale Renewable Energy Projects in Tamil Nadu
ADVERTISEMENT
ADVERTISEMENT
Videos
Appearances Are Often Deceptive, says The Suspect, An IRS Officer’s Film
Appearances Are Often Deceptive, says The Suspect, An IRS Officer’s Film
Shriram Tiwari
Jal Ganga Samvardhan Abhiyan: How Madhya Pradesh Is Turning Water Conservation into a People's Movement
Madhukar bhagat IRS
From Buddha to Bollywood:How India Preserved Its Soul Through Centuries of Change
ADVERTISEMENT
UPSC Stories
priyasha
Priyasha Verma: The IIT Engineer Who Refused to Stop Until UPSC Said Yes
From Lucknow to AIR 324, Priyasha Verma’s UPSC journey is a story of repeated near-misses, smart preparation,...
WhatsApp Image 2026-06-20 at 8.57
From Battling Kidney Surgeries to AIR 4 in UPSC IFS: How Karan Singh Turned Setbacks into Success
After battling three kidney stone surgeries, narrowly missing UPSC selection, and balancing work with...
vivek yadav
Vivek Yadav: A Driver’s Son Who Cracked UPSC Twice to Become an IPS Officer
After nearly 20 failures and years of struggle, Vivek Yadav, son of a municipal worker and a seamstress,...
CSR NEWS
rec
RECPDCL Extends ₹1.25 Crore CSR Support to Kargil to Boost Education, Healthcare and Water Infrastructure
School bus flagged off in Ladakh initiative aims to improve safe access to education and benefit nearly...
MCL
MCL Signs ₹17 Lakh CSR MoU for Battery-Operated Patient Transport Vehicles in Odisha, Boosts Rural Healthcare Access
Mahanadi Coalfields Limited will deploy three eco-friendly vehicles to improve maternal and child healthcare...
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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
India-UK Defence Cooperation
India, UK Explore New Opportunities in Military Training and Defence Technology Collaboration
Indian Army Air Defence Training
Inside the Indian Army's Plan to Train Against Future Drone and Missile Attacks
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Appearances Are Often Deceptive, says The Suspect, An IRS Officer’s Film
Shriram Tiwari
Madhukar bhagat IRS
ADVERTISEMENT
ADVERTISEMENT