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Fuel safety net: Govt allows kerosene distribution amid LPG crunch

Fuel safety net: Govt allows kerosene distribution amid LPG crunch

Bavana Guntha
March 31, 2026

The Central government has permitted temporary distribution of kerosene through the Public Distribution System (PDS) in 21 states and Union Territories that were earlier declared kerosene free , in order to support household cooking and lighting needs amid growing pressure on LPG supplies .

The decision comes in the backdrop of the ongoing conflict in West Asia , which has begun to disrupt global energy supply chains. India depends heavily on imported cooking gas, with nearly 60 percent of its LPG requirement coming from imports , and about 85 to 90 percent of those supplies sourced from Gulf countries .

With supply routes affected by the conflict, LPG availability has tightened in recent weeks. The government has prioritised domestic households in the allocation of available cooking gas, while supply to commercial users such as hotels and restaurants has been curtailed to manage the shortage.

Despite these measures, the limited availability has triggered panic buying and long queues at distribution points in several regions. Officials say the temporary return of kerosene is intended to reduce pressure on LPG demand during this period of uncertainty.

According to a gazette notification issued on March 29 by the Ministry of Petroleum and Natural Gas, an ad hoc allocation of PDS kerosene will now be allowed across the country, including in the 21 states and Union Territories that had earlier phased it out under kerosene free initiatives.

Under the arrangement, two designated PSU oil marketing company service stations per district will be permitted to store kerosene, preferably company owned and operated outlets . Each station will be allowed to store up to 5,000 litres of kerosene , subject to safety regulations.

To speed up the process, the government has also granted temporary regulatory exemptions . Agents and dealers will not be required to obtain separate licences for decanting kerosene at these designated stations. Similarly, licensed tank vehicles will not need additional permits for transporting the fuel.

However, authorities have stressed that strict safety norms issued by the Petroleum and Explosives Safety Organisation (PESO) must be followed. Detailed records of storage, distribution and handling will need to be maintained and will remain open for inspection by district authorities and safety regulators .

The temporary order has been issued under provisions of the Petroleum Act, 1934 and Petroleum Rules, 2002 , and will remain valid for 60 days or until further notice .

Officials say the measure is intended to ensure that households continue to have access to basic cooking and lighting fuel while the country navigates the current global energy disruptions.

Fuel safety net: Govt allows kerosene distribution amid LPG crunch - The Morning Voice