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
CAPF OPS
CAPF vs Government: Why OPS, ₹5,400 Grade Pay and OGAS Remain Unresolved Despite Court Victories
railways-900x550
Uttar Pradesh: From New Trains to New Stations, Agra Railway Seeks MPs’ Roadmap
RITES_green_logo
RITES Appoints Dr. Sandeepa Malhotra as Non-Official Director for Three-Year Term
NTPC-653x435
NTPC Identifies Three Sites in MP, Bihar and Odisha for Nuclear Power Plants, Targets 30 GW by 2047 
realeastate-900x550
Uttar Pradesh: 180 Awadh Vihar Commercial Plots Set for Sale After RERA Registration
CSL battery-electric tugs
CSL Begins Steel Cutting for Three Battery-Electric Transverse 2600e Tugs for Svitzer, Denmark 
dgp harish kumar gupta
Drones in the Sky, Intelligence on the Ground: AP DGP Tightens Godavari Poll Security
WCL community-focused CSR
WCL Director Bikram Ghosh Highlights Community-Focused CSR Approach at NCCSR 2026
ADVERTISEMENT
ADVERTISEMENT
Videos
Keshav kumar
From Police Officer to Forensic Pioneer: How Dr Keshav Kumar Made Science a Weapon Against Crime
ChatGPT Image Aug 20, 2026, 05_46_21 PM
How IPS Officer Keshav Kumar Used Forensics to Crack Gujarat’s Lion Poaching Case
Shakeel Ahmad Ganie IRS Interview
‘My Path Has Not Been Straight’: Shakeel Ahmad Ganie’s Journey to the IRS
ADVERTISEMENT
UPSC Stories
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...
Mayank Sachan UPSC CAPF
15+ Exam Failures, 15 Years in the Navy: How Mayank Sachan Secured AIR 343 in UPSC CAPF
Former Indian Navy sailor Mayank Sachan secured AIR 343 in UPSC CAPF 2025 after 15+ exam failures, two...
CSR NEWS
WCL community-focused CSR
WCL Director Bikram Ghosh Highlights Community-Focused CSR Approach at NCCSR 2026
Speaking at the New Delhi conference, Ghosh called CSR a “Collective Social Commitment” and highlighted...
NMDC Bacheli CSR
NMDC Bacheli Supports 181 Local Students with School Kits and Bags Under CSR Initiative 
A total of 181 students from six schools in Bhansi Gram Panchayat receive essential school items under...
BEL medical equipment
BEL Hands Over Advanced Medical Equipment to NIMHANS Bengaluru to Strengthen Mental Healthcare
The CSR initiative includes Deep TMS stimulators, TMS systems and EEG equipment to enhance diagnosis,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
CAPF OPS
CAPF vs Government: Why OPS, ₹5,400 Grade Pay and OGAS Remain Unresolved Despite Court Victories
railways-900x550
Uttar Pradesh: From New Trains to New Stations, Agra Railway Seeks MPs’ Roadmap
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Keshav kumar
ChatGPT Image Aug 20, 2026, 05_46_21 PM
Shakeel Ahmad Ganie IRS Interview
ADVERTISEMENT
ADVERTISEMENT