The government has allowed distribution of kerosene under the Public Distribution System (PDS) and through select retail outlets of state-owned oil marketing companies.
The move comes amid a shortage of liquefied petroleum gas (LPG) due to the ongoing United States-Israel-Iran war in West Asia.
“In view of the prevailing geopolitical situation affecting energy supplies worldwide, the Central Government has decided to make an ad hoc allocation of Public Distribution System (PDS) Superior Kerosene Oil (SKO) to the States/Union Territories (UTs), including 21 States/UTs which are PDS SKO-free, for distribution to households for cooking and lighting purposes,” the oil ministry said in a notification dated March 29.
The notification said that oil marketing companies will be allowed to store up to 2,500 litres of kerosene in a shed within existing service stations or petrol pumps.
It added that a maximum of two service stations of PSU oil marketing companies in each district will be permitted to store up to 5,000 litres of kerosene.
Agents and dealers under the PDS, as well as transporters, have also been exempted from certain licensing requirements to enable faster distribution.
To check misuse and black marketing, the government said that the fuel is allowed to be sold only for cooking and lighting purposes.
According to the notification, the order will remain in force for 60 days or until further orders, whichever is earlier.
Various states had phased out kerosene distribution over the past 10 years as the Centre pushed households towards LPG through the Ujjwala Yojana.
Launched in 2016, over 10.33 crore LPG connections have been released under the Ujjwala Yojana as of July 2025.
About 70 percent of LPG consumption in India comes from households, while the remaining comes from commercial use such as hotels and restaurants.
Since India is heavily dependent on LPG imports, it is facing a shortage as supplies from the Gulf region have been disrupted due to the war over the past month.
