In a major emergency measure to address the growing energy crisis, the Government of India has officially relaxed kerosene supply and licensing rules for a period of 60 days.
The Ministry of Petroleum and Natural Gas issued a Gazette notification on March 29, 2026, reintroducing Public Distribution System (PDS) Kerosene even in regions that were previously declared “kerosene-free.” The move is designed to provide a “cooking fuel safety net” as the ongoing West Asia conflict continues to disrupt LPG (Liquefied Petroleum Gas) imports, leading to nationwide shortages and panic buying.
1. Key Policy Changes (Effective Immediately)
The government has invoked emergency powers under the Petroleum Act of 1934 to bypass standard licensing requirements for faster distribution.
- Reintroduction in 21 States/UTs: Kerosene is being brought back to 21 regions that had phased it out, including Delhi, Chandigarh, Haryana, Punjab, Rajasthan, Uttar Pradesh, and Gujarat.
- Sale via Petrol Pumps: For the first time in years, select petrol pumps (OMC-operated) are permitted to store and dispense kerosene directly to households for cooking and lighting.
- Storage Limits: Designated retail outlets are now allowed to stock up to 2,500 to 5,000 litres of Superior Kerosene Oil (SKO) to ensure local availability.
- Licensing Exemptions: Kerosene agents, dealers, and transporters have been exempted from obtaining certain additional licenses for the next 60 days to speed up “last-mile” delivery.
2. The Root Cause: The LPG “Squeeze”
India typically imports 60% of its domestic LPG requirements, with over 85% of those imports originating from the Gulf region.
| Factor | Impact on Supply |
| Strait of Hormuz Blockade | Major tankers are unable to exit the Gulf, halting regular LPG shipments. |
| Commercial Cutbacks | Supplies to hotels, restaurants, and industries have been “curtailed” to prioritize households. |
| Panic Buying | Despite government reassurances, refill waiting periods in major cities have jumped from 2 days to 10–14 days. |
3. Guidelines for Consumers
To prevent hoarding and ensure safety, the government has set strict operational limits for this 60-day window:
- Limited Outlets: Only up to two fuel stations per district (designated by the state government) are authorized to dispense kerosene.
- Authorized Use: The relaxation applies only to kerosene meant for household cooking and lighting. Use for commercial or industrial purposes remains strictly regulated.
- Safety First: All designated outlets must continue to follow safety guidelines issued by the Petroleum and Explosives Safety Organisation (PESO).
4. Broader Energy Preparedness
The kerosene relaxation is part of a larger “Energy Resilience” strategy being monitored by an Informal Group of Ministers (IGoM) led by Defense Minister Rajnath Singh. Other measures include:
- Accelerated PNG: Pushing for faster Piped Natural Gas (PNG) connections in urban areas to reduce reliance on LPG cylinders.
- Alternative Fuels: Permitting the hospitality sector to temporarily use biomass, coal, or RDF pellets for a 30-day period.
- Strategic Reserves: Evaluating the release of additional fuel stocks from India’s strategic reserves if the conflict extends past April.
