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
VB-GRAMG Act
Uttarakhand CM Pushkar Singh Dhami Calls VB-GRAMG Act a Historic Reform for Rural Employment
Patna Zoo CCTV
Bihar: Patna Zoo to Get 150 CCTV Cameras, Online Ticket Booking and Smart Mobile App for Visitors
vigilance pending cases review
Bihar Govt Directs Disposal of Pending Vigilance Cases Within One Month, Reviews Over 3,000 Online Complaints
cm sai and jp nadda
Chhattisgarh’s Raipur IPHL Becomes India’s First NQAS-Certified Laboratory, Setting National Public Health Benchmark
hudco
HUDCO Signs ₹1 Lakh Crore MoU with Chhattisgarh Government to Boost Housing & Urban Infrastructure
Zero Ka Dum
BPCL Awards Technip Energies Contracts for Bina Petrochemical Units and Mumbai’s First PRFCC
cm yogi
CM Yogi Adityanath Reviews ‘Mission Karmayogi’ in UP, State Leads Nation on iGOT Training Platform
nalco
NALCO Signs MoU with CSIR–NML to Process Red Mud and Recover Rare Earth Elements
ADVERTISEMENT
ADVERTISEMENT
Videos
Rohit Nandan IAS Travel Air
How To Bring Air Travel Industry Back on Track? | Insights from Former Civil Aviation Joint Secy Rohit Nandan
Venu Rajamony
A President, a Teacher, a Father Figure: Venu Rajamony on Working with Pranab Mukherjee
Venu Rajamony
From Newsroom to The Hague: The Many Lives of Diplomat Venu Rajamony
ADVERTISEMENT
UPSC Stories
Dev Tomar IRMS
His Grandfather Was a Rebel Dacoit, but Dev Tomar’s Father Chose Education—and That Changed Everything
Dev Tomar, from a rebel dacoit grandfather to an IRMS officer, cleared UPSC 2024 (AIR 629) after five...
Paras Sharma CGPSCParas Sharma CGPSC
From Tragedy to Top Rank: How Paras Sharma Used RTI to Crack CGPSC 2024
Despite losing his parents and brother, Paras Sharma persevered, used RTI to correct past errors, and...
Neha Prajapati MPPSC
From Farmer’s Daughter to DSP: Neha Prajapati’s Inspiring MPPSC Success Story
From limited resources to Rank 14, Neha Prajapati’s MPPSC journey—from Excise Inspector to DSP—stands...
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
VB-GRAMG Act
Uttarakhand CM Pushkar Singh Dhami Calls VB-GRAMG Act a Historic Reform for Rural Employment
Patna Zoo CCTV
Bihar: Patna Zoo to Get 150 CCTV Cameras, Online Ticket Booking and Smart Mobile App for Visitors
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Rohit Nandan IAS Travel Air
Venu Rajamony
Venu Rajamony
ADVERTISEMENT
ADVERTISEMENT