Given the rising concerns about the LPG shortage, the government is looking at ways to ease concerns. Recently, 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, as per Reuters. This decision is particularly important for those who are facing delays or constraints in accessing LPG.
Kerosene back in the neighbourhood
For households, the most visible change will be where and how kerosene becomes available. According to the notification, Kerosene can be directly bought from select petrol pumps.
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.
What it means for your kitchen
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.
The government is effectively preparing households for a scenario where LPG supply could remain under pressure, even as it works to stabilise the situation.
Why this matters now
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. But on the ground, the picture was more uneven. In several places, getting a cylinder wasn’t as straightforward as before; deliveries were delayed, and availability felt patchy.
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. For consumers, this translated into something tangible: fewer options, higher costs, and a growing sense that fuel, while not officially “short,” wasn’t as easily within reach.
In fact, kerosene is just one part of a broader push. The government has also nudged states to allow fuels such as biomass, RDF pellets and coal in sectors like hospitality for a limited period.
Government’s message: don’t panic
Even as it opens up kerosene access, the Centre has been careful to avoid triggering alarm. It has reiterated that petrol and diesel stocks are adequate across the country and urged consumers not to panic or hoard LPG cylinders.
Supply chains are still functioning. 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. Port operations, too, remain normal, the notification mentioned.
More fuel in the system
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.
States have also been asked to quickly identify distribution points. At the same time, broader supply-side measures are underway. Domestic LPG production has been ramped up, refineries are operating at high capacity, and additional LNG and RLNG cargoes are being sourced to maintain overall energy availability.