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
IAS Rinkoo Singh Rahee
After Jalaun Row, IAS Rinkoo Singh Rahee Seeks Inter-State Transfer, Offers to Take Half Salary in 6-Page Letter to UP Govt
IAF Joins Exercise Pitch Black 2026 in Australia; Rafale Fighters to Lead India's Air Combat Mission
IAF Joins Exercise Pitch Black 2026 in Australia; Rafale Fighters to Lead India's Air Combat Mission
Electric Vehicle
Bihar Opens Online Applications for EV Subsidies Under Electric Vehicle Policy 2026
Former Kerala CS S.M
Former Kerala Chief Secretary SM Vijayanand: IAS Officers Must Stay Away from Political Commentary; PM Modi Is Approachable, Development-Focused
MP Cabinet Approves Uniform Civil Code; Live-in Registration Mandatory, Triple Talaq & Halala Criminalised
MP Cabinet Approves Uniform Civil Code; Live-in Registration Mandatory, Triple Talaq & Halala Criminalised
Former Indian Navy Officer Dr Raj Ratan Appointed UPSC Deputy Director (Examination Reforms)
Former Indian Navy Officer Dr Raj Ratan Appointed UPSC Deputy Director (Examination Reforms) | Know Him
Haryana DGP Ajay Singhal Pays Tribute to 82 Police Martyrs, Warns Criminals to Quit Crime or Leave State
Haryana DGP Ajay Singhal Pays Tribute to 82 Police Martyrs, Warns Criminals to Quit Crime or Leave State
Atal Dulloo
J&K Chief Secretary Atal Dulloo Reviews Data Management Strategy, Pushes Citizen-Centric Digital Governance
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
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...
Tania Mishra IA&AS
Why Tania Mishra Chose IA&AS After Serving as a CISF Assistant Commandant
Tania Mishra cracked UPSC CSE 2023 with AIR 269 after serving as a CISF Assistant Commandant. Read her...
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
When the King Bows Out - What the 2026 FIFA Final Tells India About Sport, Ambition and the Price of Neglect
When the King Bows Out - What the 2026 FIFA Final Tells India About Sport, Ambition and the Price of Neglect
IAS Divya Mittal's New Book 'The Crafted Genius' Offers a Complete Blueprint to Crack UPSC Civil Services Exam
How IAS Divya Mittal's New Book 'The Crafted Genius' Offers a Complete Blueprint to Crack the UPSC Civil Services Exam
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Piyusha Jagtap
Pulkit Khare
Haryana Leads India's First AI-Powered Bird Census
ADVERTISEMENT
ADVERTISEMENT