India is witnessing a significant fuel policy shift as 21 states reintroduce kerosene at petrol pumps, accompanied by new rules aimed at improving distribution efficiency, accessibility, and regulation in the energy sector. This decision is particularly important for those who are facing delays or constraints in accessing LPG.
The government is looking at ways to ease concerns amidst rising concerns about the LPG shortage. The rules imposed on kerosene purchases have been eased. Households can now purchase kerosene from select petrol pumps if they aren’t able to source LPG.
In a March 29 notification, the Ministry of Petroleum and Natural Gas relaxed safety and licensing norms to expand the distribution of Public Distribution System (PDS) superior kerosene oil (SKO) across 21 states and Union Territories, including regions where it had earlier been phased out, according to reports.
To support the expanded kerosene rollout, the government has increased allocations by 48,000 kilolitres over and above the regular quarterly supply of 100,000 kilolitres to states and Union Territories.
The government has mentioned that each identified petrol pump can stock up to 5,000 litres, and states can designate up to two such outlets per district. In effect, this means kerosene could become available closer to home for many consumers, especially in areas where supply chains are stretched.
The easing of rules under the Petroleum Rules, 2002, including for storage, transport and licensing, is meant to make this rollout faster, using the existing fuel retail network to plug last-mile gaps. The relaxations are temporary, in place for 60 days for now, the notification said.
Two LPG carriers, carrying about 94,000 metric tonnes of cargo, are currently headed to India, one expected to reach Mumbai on March 31 and another New Mangalore on April 1.
If LPG supply remains uneven in certain areas, households now have a clearer fallback option for cooking and lighting. The wider availability of kerosene, beyond ration shops, could make a practical difference. According to the notification, Kerosene can be directly bought from select petrol pumps.
The US-Israel-Iran conflict disrupted key fuel routes, tightening global LPG supplies and slowly filtering down to local markets. On paper, there was no crisis. The government repeatedly said supplies were adequate.
For small restaurants and eateries, the strain showed up quickly. Some cut back operations, others shut temporarily as they struggled to secure cylinders. At the same time, an informal market began to take shape, with prices reportedly shooting up to as high as Rs 7,000 in some areas. The government has also nudged states to allow fuels such as biomass, RDF pellets and coal in sectors like hospitality for a limited period.
The Centre has been careful to avoid triggering an alarm. It has reiterated that petrol and diesel stocks are adequate across the country and urged consumers not to panic or hoard LPG cylinders.