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
ONGC deepwater Rig Tender
ONGC Appoints Prashant Singh as CEO of ONGC Green to Drive 10 GW Renewable Energy Expansion by 2030
Karnisar Solar Plant
PM Modi Inaugurates NHPC’s 300 MW Karnisar Solar Power Plant in Bikaner, Boosting India’s Renewable Energy Push
Bikaner Solar Project
PM Modi Inaugurates 1000 MW Bikaner Solar Project by SJVN, Boosting India’s Renewable Energy Capacity
Jharkhand
Jharkhand Panchayats to Get ₹14,231 Crore Under 16th Finance Commission for Rural Development Push
DAKSH Leadership Programme
Dr. Jitendra Singh Inaugurates 3rd Batch of DAKSH Leadership Programme to Build Future-Ready CPSE Leaders 
MOIL new CMD appointment
MOIL Limited Achieves Record-Breaking Q1 FY2026–27 Manganese Ore Production of 5.08 Lakh Tonnes 
cm yadav
CM Mohan Yadav Directs Grand Inauguration of 70 New Sandipani Schools by July 15, Focus on Quality Education
Indigenous HAMMER Precision Weapons
India to Build 600 Indigenous HAMMER Precision Weapons for Rafale and Tejas
ADVERTISEMENT
ADVERTISEMENT
Videos
Divyanshu patel
How A Single-Minded Devotion of Divyanshu Patel Transformed Moradabad
IAS Divyanshu Patel Moradabad
The 5 am IAS Officer Who Transformed An Entire City
NDA Cadet
From History to Heroism: How NDA's First Women Cadets Changed the Academy Forever
ADVERTISEMENT
UPSC Stories
Kolape Pravin
She Cut Sugarcane So He Could Study: How Kolape Pravin Cracked UPSC With AIR 584
His mother spent years cutting sugarcane and working as a daily wage labourer to keep his UPSC dream...
Shraddha Pandey BPSC
From a Farmer's Daughter to BPSC Rank 1: How UP's Shraddha Pandey Topped Bihar Through Self-Study & a Smart Strategy
A daughter of Uttar Pradesh, Shraddha transformed setbacks into success, clearing UPPSC and then topping...
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...
CSR NEWS
REC (CSR Initiative)
REC Limited Empowers Women in West Bengal with 600 Sewing Machines Under CSR Initiative
New programme in Bangaon aims to promote self-employment, financial independence, and sustainable livelihoods...
REC
REC Ltd Signs ₹4.22 Crore CSR MoA with IGIAT to Build 100 Smart Classrooms in Assam Government Schools
REC Limited partners with IGIAT to modernise rural education in Lakhimpur and Kaziranga by introducing...
NLC
NLC India Signs ₹21.40 Lakh CSR MoU with Auroville Foundation for Electric Vehicles to Promote Green Mobility
Partnership aims to boost eco-friendly transportation in Auroville, reduce carbon emissions, and strengthen...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
ONGC deepwater Rig Tender
ONGC Appoints Prashant Singh as CEO of ONGC Green to Drive 10 GW Renewable Energy Expansion by 2030
Karnisar Solar Plant
PM Modi Inaugurates NHPC’s 300 MW Karnisar Solar Power Plant in Bikaner, Boosting India’s Renewable Energy Push
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Divyanshu patel
IAS Divyanshu Patel Moradabad
NDA Cadet
ADVERTISEMENT
ADVERTISEMENT