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
MSME
West Bengal MSME Revival Plan: Govt to Reopen 8,000 Closed Factories to Boost Industrial Growth
MDL
Mazagon Dock Shipbuilders Takes Control of Colombo Dockyard, Holds First AGM After 51% Stake Acquisition
NTPC Dadri National Awards
NTPC Dadri Wins Multiple National Awards 2026 for CSR, Sustainability, Fly Ash Use and Rajbhasha Excellence
cm hemant
Jharkhand Grants DDO Powers to PHC and CHC In-charges to Decentralize Healthcare Administration
SECI
SECI Floats 70 MW Solar + 25 MW BESS Tender in Andhra Pradesh, Expands India’s Renewable Energy Push
Gaganyaan Mission
When Will Gaganyaan Launch? ISRO Chairman Gives Fresh Update
First Nuclear-Powered Hydrogen Plant
Explained: How India's World's First Nuclear-Powered Hydrogen Plant Could Change Clean Energy
Gaganyaan Mission
ISRO's High-Thrust Semi-Cryogenic Engine Passes Critical Test Ahead of Future Launches
ADVERTISEMENT
ADVERTISEMENT
Videos
NDA Cadet
From History to Heroism: How NDA's First Women Cadets Changed the Academy Forever
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
ADVERTISEMENT
UPSC Stories
Viral Sharma UPSC
From Village to Victory: Viral Sharma Cracks UKPCS with Rank 7, Clears BPSC, Reaches UPSC Interview & Refuses to Stop Chasing IAS
Despite multiple setbacks, the NIT Allahabad graduate never gave up. Preparing largely from his village...
nikit singh
How Nikit Singh Cracked Civil Services, Wrote a Book, and Faced the Exam Hall Bleeding
From preparing in Indore to securing AIR 491 in UPSC CSE 2025, Nikit Singh’s journey is a story of grit,...
somya jainnn
The ‘One Extra Mark’ Formula That Helped Somya Jain Secure AIR 346 in UPSC 2025
From a small town in Madhya Pradesh to UPSC CSE 2025 AIR 346, Somya Jain’s self-study journey is a story...
CSR NEWS
NTPC Dadri National Awards
NTPC Dadri Wins Multiple National Awards 2026 for CSR, Sustainability, Fly Ash Use and Rajbhasha Excellence
Power station bags top honours in healthcare, environment and social impact categories, highlighting...
NMDC
NMDC Distributes 1,613 Fruit Saplings in Chhattisgarh Under CSR Drive to Boost Rural Livelihoods
Company promotes sustainable farming, nutrition, and green cover in Nerli and Bade Bacheli through mango,...
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...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
MSME
West Bengal MSME Revival Plan: Govt to Reopen 8,000 Closed Factories to Boost Industrial Growth
MDL
Mazagon Dock Shipbuilders Takes Control of Colombo Dockyard, Holds First AGM After 51% Stake Acquisition
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
NDA Cadet
Appearances Are Often Deceptive, says The Suspect, An IRS Officer’s Film
Shriram Tiwari
ADVERTISEMENT
ADVERTISEMENT