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
Bihar
Bihar Cabinet Approves 25 Big Decisions: New Panchayat Delimitation, Rural Taxes, ₹829 Crore Water Projects
Bharat Tex-2026
Madhya Pradesh Secures ₹20,193 Crore Investment Proposals, Over 27,000 Jobs Expected Ahead of GIS-2027
MOIL new CMD appointment
MOIL Appoints Sonali Sanjit Nagvenkar as Independent Director for Three-Year Term
Rail News
Jharkhand Gets ₹3,907 Crore Railway Infrastructure Boost as Centre Approves Two Major Rail Projects
hsl
HSL Hosts MSME Conclave in Tirupati to Boost Defence Manufacturing and Aatmanirbhar Bharat
IAS Officers Indian Administrative Services IAS logo
Centre Appoints IAS Officers Nipun Jindal, Ajay Singh Tomer to Key Posts in Economic Affairs, Agriculture Ministries | Know Them
SFAC MD
ACC Appoints Dr Srinivasa Kumar Tummala as Earth Sciences Secretary; Extends Hemang Jani's World Bank Tenure
vivek saxena
Who Is Dr Vivek Saxena? Haryana IFS Officer Becomes First State-Cadre Officer Selected as UNESCO World Heritage Reviewer
ADVERTISEMENT
ADVERTISEMENT
Videos
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
Divyanshu patel
How A Single-Minded Devotion of Divyanshu Patel Transformed Moradabad
ADVERTISEMENT
UPSC Stories
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...
bhoopendra
Bhoopendra Dhakad: Raised in a Farming Family, Educated at IIT, Chosen by UPSC
IIT Kanpur graduate Bhoopendra Dhakad secured UPSC CSE 2025 AIR 494 after four attempts, overcoming setbacks...
CSR NEWS
ntpc
NTPC Strengthens Goa Healthcare Services with 19 Emergency Medical Vehicles Under CSR Initiative 
The CSR initiative includes BLS, ALS and cardiac ambulances along with medicine vans to strengthen healthcare...
MCL
MCL Invests ₹375.87 Crore in Odisha CSR Projects to Drive Healthcare, Education and Community Growth
Coal India Subsidiary Focuses on Healthcare, Education, Livelihood Support and Sustainable Growth Through...
SECL Ke Sushrut Gazette Notification
SECL’s ‘SECL Ke Sushrut’ Becomes First Coal PSU CSR Scheme to Get Gazette Notification
Ministry of Coal enables Aadhaar authentication for SECL’s flagship NEET coaching initiative, enhancing...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
ChatGPTImageJul162026at09_26_00P
From Paper Files to AI-Powered Governance: The Story Behind Pune's National Award-Winning Digital Transformation
Bihar
Bihar Cabinet Approves 25 Big Decisions: New Panchayat Delimitation, Rural Taxes, ₹829 Crore Water Projects
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Pulkit Khare
Haryana Leads India's First AI-Powered Bird Census
Divyanshu patel
ADVERTISEMENT
ADVERTISEMENT