7 November 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
HAL_resized
Leadership Updates: PESB Recommends Jasbir Singh for HAL Director (Engineering & R&D) Post
NCL CSR Blood Bank Project
NCL Signs ₹1.16 Crore CSR MoU to Establish Blood Bank at District Hospital in Singrauli
Cochin Shipyard COLLAB
Cochin Shipyard Signs MoUs with Four Kerala Engineering Colleges to Boost Research and Innovation 
NALCO Angul CPP Plant
NALCO’s Angul Captive Power Plant Wins ‘CPP Plant of the Year’ Award for Fly Ash and Waste Utilisation 
MP-Police-
MP IPS Transfers: Malay Jain Appointed Balaghat SP; Sachin Kumar Atulkar, Pradeep Sharma Get Additional Charges
Praveen Mal Khanooja
Who Is Praveen Mal Khanooja? IA&AS Officer Gets Six-Month Extension as Additional Secretary in Petroleum Ministry
Justice Rajesh Bindal
Who Is Justice Rajesh Bindal? Former Supreme Court Judge Appointed NCLAT Chairperson
NLMC
CPSE Asset Monetisation: Inter-Ministerial Group Recommends Proposals Worth Over ₹1,100 Crore
ADVERTISEMENT
ADVERTISEMENT
Videos
Five years after Kargil, India sent its cricketing heroes to Pakistan where terrorism posed a deadly threat. The man guarding them, former Special Director of Intelligence Bureau, Mr. Yashovardhan Azad, reveals what all went behind the scenes during that crucial tour. 
Trust No One, Said His Instinct in Pakistan
Gajendra Singh Shekhawat
How India Plans to Boost Tourism, Create Jobs and Ease Overcrowding : Gajendra Singh Shekhawat on the Road to 2047
Dr Saket Badola IFS
Beyond Tigers and Safaris: How Corbett Literature Festival Wants to Change the Conservation Conversation
ADVERTISEMENT
UPSC Stories
IDAS Himanshu Tembhekar
Should UPSC Aspirants Give Up Their Hobbies? IDAS Officer Himanshu Tembhekar Explains
Should UPSC aspirants give up their hobbies? IDAS officer Himanshu Tembhekar explains how hobbies help...
UPSC Story
He Taught Students to Meet Expenses. Today, Sachin Bhadouria is a Scientist ‘B’ at CWPRS
Sachin Bhadouria overcame financial challenges and a Hindi-medium background to secure AIR 2 in a UPSC...
Vishwas Jhargad UPSC CAPF
A Photograph of His Mother Accompanied Vishwas Jhargad to the UPSC Interview, Where His Dream Came Closer
Vishwas Vijay Jhargad lost both parents as a child. With his family's support, he secured AIR 145 in...
CSR NEWS
NCL CSR Blood Bank Project
NCL Signs ₹1.16 Crore CSR MoU to Establish Blood Bank at District Hospital in Singrauli
The project will fund essential medical equipment, furniture and renovation of the existing building...
REC Foundation Solar Street Light
REC Foundation to Install 350 Solar Street Lights Across Six Districts of West Bengal to Improve Rural Safety 
The CSR initiative, undertaken in partnership with Y4D Foundation, aims to improve night-time safety...
nalco
NALCO Signs MoU with SDI Bhubaneswar to Provide Skill Training to 60 Youths in Odisha
The three-month CSR programme will benefit youths from villages near NALCO's Angul and Koraput complexes,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
HAL_resized
Leadership Updates: PESB Recommends Jasbir Singh for HAL Director (Engineering & R&D) Post
NCL CSR Blood Bank Project
NCL Signs ₹1.16 Crore CSR MoU to Establish Blood Bank at District Hospital in Singrauli
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Five years after Kargil, India sent its cricketing heroes to Pakistan where terrorism posed a deadly threat. The man guarding them, former Special Director of Intelligence Bureau, Mr. Yashovardhan Azad, reveals what all went behind the scenes during that crucial tour. 
Gajendra Singh Shekhawat
Dr Saket Badola IFS
ADVERTISEMENT
ADVERTISEMENT