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

The central government has relaxed petroleum safety and licensing rules for faster kerosene distribution to households due to the US-Israel-Iran war's impact on LPG supply, enabling ad-hoc distribution in 21 states and UTs.

Jocelyn Fernandes
Updated29 Mar 2026, 10:52 PM IST
India has relaxed petroleum safety and licensing rules for faster kerosene distribution to households amid LPG crunch due to the West Asia war.
India has relaxed petroleum safety and licensing rules for faster kerosene distribution to households amid LPG crunch due to the West Asia war.(File Photo )

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.

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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.

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  • 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.

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  • 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.

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  • 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.

About the Author

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>

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