Central govt's push to phase out kerosene still a 'work in progress'

The Centre’s push to phase out kerosene is a work in progress, a decade after the move towards rationalising the allocation of the fuel to states.
 
For now, most states still seek kerosene allocations and users continue demanding the fuel. The Centre has phased out budgetary subsidies for this fuel. There is no kerosene subsidy this fiscal year against Rs 2,677.32 crore in FY21.
 
Under the public distribution system (PDS) for the September-December quarter, 447.47 million litres has been provisioned by the Ministry of Petroleum and Natural Gas for 26 states and Union Territories (UTs).
 
The highest allocation has been made for West Bengal at 176 million litres. Bihar comes second at 42.55 million litres.
 
There has been no allocation for the UTs of Ladakh and Lakshadweep in the third quarter because the allocation for the full year was given in the first quarter itself.

 
In March 2021, the Centre had declared 10 states kerosene-free. Kerosene is notoriously polluting when used to spike petrol. This was stated as one of the triggers to hasten the phase-out of kerosene usage in the country, starting from Delhi.
 
The petroleum ministry said kerosene allocation under PDS to states and UTs is being rationalised since 2010-11, taking into account increase in domestic cooking gas connections, electricity coverage, and the states and UTs not lifting their quota.
 
Push for continuing PDS kerosene allocation
 
Dealers and states such as Kerala and West Bengal say the demand for kerosene persists. There is continued demand at ration shops and that is unmet due to the Centre’s policy of reducing kerosene allocations.
 
In a recent representation to Union Petroleum Minister Hardeep Puri, the West Bengal Kerosene Agents’ Welfare Association said the kerosene demand would not be eliminated just by giving free cooking gas connections.
 
The Union government was of the view that distributing free liquefied petroleum gas (LPG) connections under the Pradhan Mantri Ujjwala Yojana (PMUY) and electrification under the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or Saubhagya, would eliminate the need for kerosene since it was largely used for illumination and cooking.
 
The high cost of LPG cylinder refills is said to be reinvigorating kerosene demand. “The demand for cheaper fuels like kerosene will always be there,” Arvind Thakker, president, All India Kerosene Dealers’ Fede­ration, told Business Standard. Thakker is based in Gujarat, one of the states that continue to get kerosene allocation.
 
Kerosene is used in the fishing and agricultural sectors in Kerala and the quarterly allocation is considered insufficient. In a letter to Union Consumer Affairs Minister Piyush Goyal, Kerala Chief Minister Pinarayi Vijayan cited the recent floods and landslides in the state as a reason for seeking an additional 12 million litres.
 
The petroleum ministry has allocated to the state 6.78 million litres as a one-time measure in addition to the previous allocation of 15.11 million litres. N C Raju, general secretary, All Kerala Kerosene Wholesale Dealers’ Association, said: “The present quarterly allocation for kerosene hardly lasts a month because of the sustained demand in the state.”
 
Uttar Pradesh, one of the poorer states of the country, was declared kerosene-free in 2020 and no allocation of the fuel is being made by the Centre since then.
 
Haryana, Punjab, Andhra Pradesh, Rajasthan, and UTs of Delhi, Chandigarh, Daman & Diu, Dadar & Nagar Haveli, Andaman & Nicobar Island and Puducherry have become kerosene-free.