Ministry of Petroleum and Natural Gas Kerosene Plan Hits Roadblocks Amid Low Demand and State Hesitation

The Ministry of Petroleum and Natural Gas has directed all states to identify distribution points in districts and distribute kerosene primarily through ration shops or designated outlets. However, there has been limited enthusiasm from states to implement this scheme.

According to official reports, only 17 states or union territories have issued SKO (Superior Kerosene Oil) allocation orders so far. Meanwhile, Himachal Pradesh and Ladakh have explicitly stated they do not require kerosene. Many other states remain hesitant to issue orders.

Experts and officials suggest that the main issue is the decline in kerosene stove usage. In many states like Rajasthan, Haryana, and Uttar Pradesh, kerosene distribution through the Public Distribution System (PDS) was discontinued around 2017, leaving people without access to kerosene. Additionally, the current allocation is considered too low. The central government has mandated that kerosene be distributed only at two locations per district, which could worsen the situation if those who buy stoves from the market start using kerosene, but supplies are irregular. This approach is unlikely to be popular.

Himachal Pradesh and Ladakh have made it clear they do not need kerosene. Over the past decade, the central government has been gradually reducing kerosene distribution, encouraging the use of cleaner fuels like LPG through cash incentives and transferring kerosene quotas under the Direct Benefit Transfer scheme.

Consequently, 21 states and union territories are now free of PDS kerosene. Government data shows that the kerosene allocation through PDS in 2023-24 was only 1, 060, 524 kiloliters, with West Bengal receiving the largest share at 704, 704,016 kiloliters, comprising 66%. Ten years ago, in 2015-16, the allocation was nearly 8. 6 million kiloliters.

Currently, the monthly quota is about 100, 000 kiloliters, much lower than before. The Petroleum Ministry states that this increased allocation is temporary and aimed at easing LPG demand during the West Asian crisis. However, delays in implementation are caused by state distribution arrangements, stove availability, and uncertainties about future supplies.

The government clarified that kerosene would mainly be supplied to ration card holders for cooking and lighting, but many states are still preparing. Some public- sector petrol pumps operated by Indian Oil, Bharat Petroleum, and Hindustan Petroleum have been authorized to store and sell kerosene, with each outlet allowed to hold up to 5, 000 liters.