What Happened
- The Central Government has made an ad hoc allocation of PDS Superior Kerosene Oil (SKO) to States and Union Territories for 60 days to ensure households facing LPG constraints have access to essential fuel for cooking and lighting, amid supply disruptions caused by the West Asia conflict and its impact on global LPG trade routes.
- The allocation covers 21 States and UTs that had previously been declared "PDS kerosene-free" — including Delhi, Chandigarh, Haryana, Punjab, Uttar Pradesh, Rajasthan, Goa, Madhya Pradesh, and Gujarat — which had surrendered their kerosene quotas as LPG coverage became near-universal under PMUY.
- The government has allocated an additional 48,000 KL of kerosene above the regular allocation; separately, norms for kerosene storage at petrol stations have been relaxed — up to two designated PSU OMC stations per district may store up to 5,000 litres under prescribed safety conditions.
- The notification was issued under Section 12 of the Petroleum Act, 1934 read with Rule 201 of the Petroleum Rules, 2002; kerosene use remains restricted to cooking and illumination only under the Kerosene Control Order, 1993.
- Since March 14, 2026, commercial entities have uplifted 39,368 metric tonnes of LPG across affected regions; domestic refinery production of LPG has been increased and 28 states have issued orders for non-domestic LPG allocation under GoI guidelines.
Static Topic Bridges
LPG Supply Chain in India — Structure, Import Dependence, and Vulnerability
Liquefied Petroleum Gas (LPG), primarily a mixture of propane and butane, is used by over 31 crore households in India for cooking. India's LPG supply is partly domestic (from oil refineries and natural gas processing units) and partly imported — India imports roughly 40–45% of its LPG requirements, primarily from Gulf countries through key terminals at Mumbai, Kandla, Mangalore, Kochi, and Haldia. The West Asia conflict — specifically the near-shutdown of the Strait of Hormuz — has disrupted LPG tanker movements, creating supply shortfalls in coastal and northern regions that depend heavily on imported LPG cargoes.
- India is the world's second-largest LPG consumer (after China)
- Domestic LPG production: From refineries of IOC, BPCL, HPCL, ONGC, Reliance (Jamnagar); ~55–60% of needs
- LPG imports: ~40–45% of requirement; major suppliers — Saudi Arabia, Kuwait, UAE (all Hormuz-dependent)
- LPG terminal capacity: Concentrated in western and southern coasts; northern states more import-dependent
- LPG sold in India: 14.2 kg cylinder (domestic), 19 kg (commercial), 47.5 kg (industrial bulk)
- PSU OMCs — IOC, BPCL, HPCL — are the sole distributors of subsidised domestic LPG
- PMUY subsidised connections: Over 10 crore households; free connections for BPL families
Connection to this news: India's LPG import dependence on Gulf suppliers means the West Asia conflict directly triggers supply shortfalls, necessitating the kerosene fallback — an illustration of how energy import concentration creates household energy security vulnerabilities.
"Kerosene-Free" State Designation — Policy Background
The government's drive to eliminate PDS kerosene was pursued under the twin policy goals of reducing fuel subsidy leakage and promoting cleaner cooking fuels through LPG. Kerosene PDS had been infamous for widespread diversion — PDS kerosene (priced well below market price) was regularly siphoned off for adulteration of petrol/diesel or for black market sale. As PMUY rapidly scaled up LPG connections from 2016 onwards, states with high LPG penetration were encouraged to voluntarily surrender their PDS kerosene quotas. By 2024–25, 21 states and UTs had declared themselves kerosene-free, reducing the all-India PDS kerosene offtake to a fraction of its 2010 peak.
- Peak PDS kerosene offtake: ~8–9 million tonnes/year (circa 2010); reduced to under 2 million tonnes by 2025
- PMUY launched: May 2016; target — 5 crore BPL LPG connections; exceeded and extended
- Kerosene diversion (adulteration): A major policy problem — PDS kerosene at ₹10–15/litre was diverted into diesel (₹90+/litre); DBT and Aadhaar-seeding of ration cards helped reduce this
- "Kerosene-free" eligibility: States with near-universal LPG household coverage could apply to MoP&NG for zero kerosene quota
- Direct Benefit Transfer (DBT) for LPG: Pahal scheme — LPG subsidy transferred directly to beneficiary bank accounts; reduces ghost beneficiaries
- Pratyaksha Hastaantarit Laabh (PAHAL): World's largest DBT scheme; ~25 crore beneficiaries at peak
Connection to this news: The very success of the kerosene-free policy creates the current vulnerability — when LPG supply falters, these states have no fallback fuel infrastructure. The 60-day reversal highlights the policy tension between long-term clean energy transition and short-term energy security resilience.
Energy Security and the Essential Commodities Act Framework
India's energy security policy operates through a combination of strategic reserves, import diversification, administered pricing, and emergency allocation powers. The Essential Commodities Act, 1955 grants the Central Government broad powers to regulate production, supply, distribution, and trade of "essential commodities" — including petroleum products. The Petroleum Act, 1934 provides specific powers over storage, transport, and distribution of petroleum. In emergencies, these overlapping legislative frameworks allow the government to quickly override normal commercial and regulatory restrictions — as seen in the PDS kerosene reintroduction.
- Essential Commodities Act, 1955 (ECA): Section 3 empowers Centre to control production, supply, and distribution of essential commodities; used extensively for food and fuel regulation
- ECA Amendment 2020: Deregulated cereals, pulses, oilseeds — but petroleum products remain "essential" under the Act
- Petroleum Act, 1934: Section 12 authorises the Centre to modify storage norms in emergencies (used in this notification)
- National Strategic Petroleum Reserves: ~39.1 million barrels at Visakhapatnam, Mangalore, and Padur — for crude oil only (no LPG strategic reserves)
- India's LPG strategic reserve capacity: Limited; no dedicated LPG reserves comparable to crude oil SPR
- MOPNG (Ministry of Petroleum and Natural Gas): Nodal ministry for petroleum product allocation under crisis conditions
Connection to this news: The absence of LPG strategic reserves means India must rely on emergency demand-side measures (kerosene reintroduction, commercial LPG reallocation) when the supply chain is disrupted — a structural gap in India's energy security architecture that this crisis has exposed.
Key Facts & Data
- Duration of emergency measure: 60 days
- States/UTs covered: 21 (previously kerosene-free)
- Additional kerosene allocated: 48,000 KL over regular allocation
- Petrol station storage limit (emergency): 5,000 litres at up to 2 PSU OMC stations per district
- Legal authority: Section 12 of the Petroleum Act, 1934 + Rule 201 of Petroleum Rules, 2002
- Kerosene use restriction: Cooking and illumination only (Kerosene Control Order, 1993)
- LPG uplifted since March 14, 2026: 39,368 metric tonnes by commercial entities
- States/UTs issuing non-domestic LPG orders: 28
- PMUY connections (2025): Over 10 crore households
- India's LPG import share: ~40–45% of total consumption; majority from Gulf (Hormuz-dependent)
- Peak PDS kerosene offtake (circa 2010): ~8–9 million tonnes/year; declined to under 2 million tonnes by 2025
- India's crude/petroleum strategic reserve capacity: ~39.1 million barrels (Vizag, Mangalore, Padur) — crude only, no LPG reserves