Govt eases kerosene rules for quick household distribution amid LPG supply crunch due to West Asia war

The central government has today relaxed petroleum safety and licensing rules to allow faster distribution of kerosene to households, amid impact of the US-Israel-Iran war on supply of liquified petroleum gas (LPG), Reuters reported.

It added that the Ministry of Petroleum and Natural Gas in a notification said the measures would enable the ad‑hoc distribution of keroseneto households for cooking and lighting in 21 states and union territories (UTs).

Centre encourages use of kerosene amid LPG shortage

In its daily update on the energy supply situation in India on 29 March, the ministry noted that the government has offered alternate fuel options such as kerosene and coal to ease pressure on LPG demand.

Earlier too, on 12 March, the government said it sought to increase the use of alternative fuels such as kerosene and coal amid a supply crunch caused by the West Asia conflict. The ministry of environment, forest and climate change advised State Pollution Control Boards to permit the use of biomass, kerosene, RDF pellets and coal as alternate fuels for the hospitality sector for a month.

The government also increased the allocation of kerosene to states from 1,00,000 kiloliters every quarter. Separately, Union petroleum and natural gas minister Hardeep Singh Puri informed Parliament that alternate sources of fuel are being activated to ease pressure on LPG and gas channels.

What steps have been taken for kerosene access?

  • As per the ministry’s update, an additional allocation of 48,000 kilo litre of kerosene over and above the regular allocation has been made to all states and UTs.
  • It added that states and UTs have been requested to identify locations in districts for distribution of kerosene.
  • It said 17 States and UTs have issued SKO allocation orders. Further, Himachal Pradesh and Ladakh has communicated that there is no SKO requirement in the State and UT, respectively.

Key takeaways on energy sectors amid West Asia war

  • According to the ministry release, adequate stocks of petrol and diesel available at all petrol pumps in country.
  • It added that the public is advised not to believe rumours about shortage and panic buy LPG cylinders.
  • According to the release, supply to urea plants is steady at 70–75% of last 06-month average; additional LNG and RLNG being sourced to maintain supplies.
  • More than 2.9 lakh connections have been gasified during March across domestic, commercial, hostel, mess and canteen categories, it added.
  • City Gas Distribution (CGD) companies like IGL, MGL, GAIL Gas and BPCL have offered incentives for taking domestic and Commercial PNG connections.
  • For supplies, two LPG carriers with about 94,000 MT cargo safely transit region, moving towards Indian shores, as per the statement.
  • BW TYR is proceeding towards Mumbai with an expected time of arrival on 31 March 2026. And BW ELM is en route to New Mangalore with estimated arrival date of 1 April 2026.
  • It informed that port operations across India remain normal, with no congestion reported.
  • Further, the ministry said that the Centre is closely monitoring the situation in Gulf and West Asia; noting that safety and welfare of the Indian community in the region remains highest priority.
  • Missions continue assistance to Indian nationals, including seafarers and students, with visa, consular and logistical support, it added.
Key Takeaways
  • The Indian government has relaxed petroleum safety and licensing rules to facilitate kerosene distribution.
  • This initiative is a direct response to the impact of geopolitical conflicts affecting LPG supply.
  • Alternative fuels like kerosene and coal are being promoted to ensure energy availability for households.

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