17 October 2026
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
PMGSY Bihar rural road connectivity
Bihar Plans Plus Two Education for Madhyama-Pass Students, Orders Inspection of Sanskrit Schools and Madrasas
Delhi-NCR Air Pollution Solutions
Delhi-NCR Air Pollution: Bhupender Yadav Engages Start-ups to Explore Affordable, Technology-Driven Solutions 
Jammu and Kashmir Police (J&K Police)
J&K Police Reshuffle: 6 IPS Officers Get New Postings, 12 DSPs Transferred; Aditi Verma Named SDPO West Srinagar
Bihar Highway Projects 2026–27
Bihar Gets Approval for 2,424 Km Highway Projects Worth ₹1.64 Lakh Crore Under 2026–27 Plan
Maharashtra Drought Relief 2026
Maharashtra Drought: IAS, IPS Officers to Donate One Day’s Salary as 305 Talukas Declared Drought-Affected
AGMUT resized
Delhi IAS Reshuffle: 3 AGMUT Cadre Officers Get New Responsibilities; Nandini Paliwal Named Power Secretary
expo-bhadohi-yogi-adityanath
Yogi Adityanath Highlights UP’s Sports Development and Women Athletes on Navratri Day 6
Central Bank of India
Central Bank Q2 FY27 Results: Net Profit Jumps 21.1% to ₹1,468.86 Crore, NNPA Falls to 0.31% 
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
PK Jena
Why Technology Cannot Replace Human Connection in Governance: P.K. Jena
PK Jena
The IAS Officer Who Put People Before Paperwork: How PK Jena Challenged Corruption and Reformed Governance
ADVERTISEMENT
UPSC Stories
Umar Janj UPSC CAPF
15+ Failures Couldn’t Stop Him: Umar Janj Secures AIR 160 in UPSC CAPF 2025
After multiple SSB setbacks, a CAPF interview miss by 12 marks and more than 15 failures, Umar Janj secured...
Aayush Sharma
Three CDS Attempts, Five AFCAT Qualifications & Medical Setback: How Aayush Sharma Secured CAPF AIR 135
After three unsuccessful SSB attempts, five AFCAT qualifications and a medical setback, Aayush Sharma...
Tushar Chaudhary IRMS
He Left Intel, Built COPAL-19, Spent Months at AIIMS, Ran Half Marathons, and Returned to UPSC—Tushar Chaudhary’s Journey to IRMS
UPSC ESE AIR 4 Tushar Chaudhary left a ₹25 LPA Intel job, built COPAL-19, spent months at AIIMS, ran...
CSR NEWS
NBCC India CSR Award 2026
NBCC India Wins Award for Excellence in CSR at 4th Fortune Leadership Awards 2026
The recognition honours NBCC’s community welfare initiatives and efforts to improve healthcare accessibility...
HURL ALIMCO
HURL Signs MoU with ALIMCO to Support Divyangjans and Senior Citizens in Gorakhpur, Barauni and Sindri
Under its CSR initiative, HURL will support PMD-VK Gorakhpur and facilitate the distribution of need-based...
MDL CSR Support to Divyasha Vayoshri Kendra
MDL Extends ₹3.79 Crore CSR Support to Divyasha Vayoshri Kendra in Mumbai
The initiative will strengthen access to assistive devices, prosthetics and rehabilitation services for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
PMGSY Bihar rural road connectivity
Bihar Plans Plus Two Education for Madhyama-Pass Students, Orders Inspection of Sanskrit Schools and Madrasas
Delhi-NCR Air Pollution Solutions
Delhi-NCR Air Pollution: Bhupender Yadav Engages Start-ups to Explore Affordable, Technology-Driven Solutions 
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Dr Saket Badola IFS
PK Jena
PK Jena
ADVERTISEMENT
ADVERTISEMENT