What Happened
- The Central Government has authorised an ad hoc allocation of Public Distribution System (PDS) Superior Kerosene Oil (SKO) to 21 States and Union Territories that had previously been declared PDS-kerosene-free, citing energy supply disruptions caused by the West Asia conflict.
- The notification was issued under Section 12 of the Petroleum Act, 1934, read with Rule 201 of the Petroleum Rules, 2002; the allocation is for 60 days and is intended for household cooking and lighting purposes only.
- An additional 48,000 KL of kerosene has been allocated over and above the regular allocation to all States and UTs; under relaxed storage norms, up to two designated PSU oil marketing company service stations per district may store up to 5,000 litres of kerosene.
- The 21 kerosene-free states and UTs that are receiving this emergency allocation include Delhi, Chandigarh, Haryana, Punjab, Uttar Pradesh, Rajasthan, Goa, Madhya Pradesh, and Gujarat, among others — these states had previously voluntarily surrendered their PDS kerosene quotas as LPG penetration reached near-universal levels.
- Since March 14, 2026, a total of 39,368 metric tonnes of LPG has been uplifted by commercial entities across affected regions; 28 States and UTs have issued orders allocating non-domestic LPG as per GoI guidelines.
Static Topic Bridges
Public Distribution System (PDS) — Architecture and Commodities
The Public Distribution System is a centrally-sponsored scheme for distributing essential commodities at subsidised prices through a network of Fair Price Shops (FPS) across India. It is operated under the joint responsibility of the Central and State/UT governments. The Central Government — through the Food Corporation of India (FCI) — handles procurement, storage, transportation, and bulk allocation; State governments handle intra-state distribution and beneficiary identification. PDS commodities have historically included wheat, rice, sugar, and kerosene, though the commodity basket varies by state and policy decisions.
- PDS established in its modern form after the 1960s food scarcity; restructured as Targeted PDS (TPDS) in 1997
- NFSA 2013 (National Food Security Act): Entitles 67% of India's population to subsidised foodgrains under PDS — 5 kg/person/month at ₹1–3/kg
- Fair Price Shops (FPS): ~5.5 lakh shops across India; managed by state-appointed dealers
- Kerosene under PDS governed by Kerosene Control Order, 1993 — mandates use only for cooking and illumination
- "Kerosene-free" status: States declare themselves kerosene-free after achieving near-universal LPG coverage under Pradhan Mantri Ujjwala Yojana (PMUY)
- Governance: Ministry of Consumer Affairs, Food and Public Distribution (for food); Ministry of Petroleum and Natural Gas (for kerosene)
Connection to this news: The 21 states receiving emergency kerosene are precisely those that had exited the PDS kerosene system — the government is reversing this for 60 days as LPG supply constraints create a gap in household energy access.
Pradhan Mantri Ujjwala Yojana (PMUY) and the LPG-Kerosene Transition
Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016 with the goal of providing LPG connections to women from BPL households, replacing kerosene and biomass as cooking fuels to reduce indoor air pollution. PMUY has been one of India's largest welfare schemes and a primary driver of the rapid decline in PDS kerosene offtake over the past decade. As LPG penetration reached ~99% of households by 2025 (from ~55% in 2016), states progressively surrendered their PDS kerosene quotas. The West Asia supply disruption has exposed a residual vulnerability: even in states with high LPG adoption, a sudden supply constraint can leave households without affordable cooking fuel alternatives.
- PMUY Phase 1 (2016): 5 crore BPL connections target; Phase 2 (2021): Extended to 1 crore additional connections
- PMUY 2.0 (launched August 2021): Extended eligibility to migrants and informal workers
- Total PMUY beneficiaries as of 2025: Over 10 crore connections
- Kerosene has a dual use in poor households: cooking (for those who run out of LPG) and illumination (in non-electrified areas)
- The shift from kerosene to LPG reduced annual PDS kerosene offtake from ~7–8 million tonnes to under 2 million tonnes
- Indoor air pollution from kerosene/biomass is responsible for significant respiratory disease burden — WHO estimates
Connection to this news: The emergency kerosene reintroduction directly reveals the limits of PMUY's supply security: distribution access was achieved, but supply chain resilience for LPG (dependent on West Asia imports) was not fully secured — a structural vulnerability now exposed by the crisis.
Petroleum Act, 1934 — Regulatory Framework for Petroleum Products
The Petroleum Act, 1934 is the foundational legislation governing the import, transport, storage, production, refining, and blending of petroleum products in India. The Act empowers the Central Government to regulate all aspects of petroleum handling, including licensing of storage facilities. The Petroleum Rules, 2002 (framed under the Act) prescribe detailed safety and storage norms for petroleum products at various locations. The current emergency notification authorising kerosene storage at petrol pump stations is issued under Section 12 of the Act (read with Rule 201), which allows the government to relax or modify rules in extraordinary circumstances.
- Petroleum Act, 1934: Enacted during British India; remains the primary law for petroleum safety and regulation
- Petroleum Rules, 2002: Updated rules replacing the 1976 Rules; prescribe storage limits, safety distances, licensing
- Normal storage limit at retail fuel stations for kerosene: Much lower than 5,000 litres; the emergency order specifically relaxes this
- PESO (Petroleum and Explosives Safety Organisation) under Ministry of Commerce and Industry enforces storage norms
- Petroleum products are also governed by Essential Commodities Act, 1955 for price and supply regulation
- The Centre's power to intervene in petroleum distribution flows from multiple Acts: Petroleum Act (safety/storage), Essential Commodities Act (supply/prices), and the Petroleum Planning regulations
Connection to this news: The legal authority for the emergency kerosene allocation order — Section 12 of the Petroleum Act, 1934 — is a direct UPSC-relevant fact, as it shows how executive emergency powers in sectoral legislation are invoked during supply crises.
Key Facts & Data
- Duration of emergency allocation: 60 days
- Number of states/UTs covered: 21 (previously declared kerosene-free)
- Additional kerosene allocated: 48,000 KL over and above regular allocation
- Storage allowed at petrol stations: Up to 5,000 litres at up to 2 designated PSU OMC stations per district
- Legal authority: Section 12 of the Petroleum Act, 1934 read with Rule 201 of the Petroleum Rules, 2002
- LPG uplifted since March 14, 2026: 39,368 metric tonnes by commercial entities
- States/UTs issuing non-domestic LPG orders: 28
- Kerosene use restriction: Cooking and illumination only (Kerosene Control Order, 1993)
- PMUY total connections: Over 10 crore households as of 2025
- PDS governance: Joint responsibility of Centre (FCI for food; OMCs for kerosene) and States/UTs