Centre Allows PDS Kerosene Sale Through Petrol Pumps in 21 States/UTs for 60 Days

In a significant move to ensure uninterrupted supply of cooking and lighting fuel amid global geo-political uncertainties affecting energy supplies, the Ministry of Petroleum and Natural Gas has issued a notification easing storage and distribution norms for Public Distribution System (PDS) Superior Kerosene Oil (SKO).

The Central Government has granted temporary exemptions and permissions under the Petroleum Act, 1934 and Petroleum Rules, 2002, to facilitate easier distribution of PDS SKO through designated petrol pumps in 21 PDS SKO-free States and Union Territories.

This ad-hoc arrangement will help households in these regions access kerosene for cooking and lighting purposes more conveniently for the next 60 days or until further orders, whichever is earlier.

Why This Decision Was Taken

Due to the prevailing geo-political situation impacting global energy supplies, the Centre has decided to make special ad-hoc allocations of PDS SKO to States and Union Territories, including those that had become “SKO-free” in recent years. Many states had stopped regular PDS kerosene distribution after shifting households to LPG under schemes like Pradhan Mantri Ujjwala Yojana. However, the current global uncertainties have prompted the government to restart limited distribution to support vulnerable families.

To make distribution faster and more efficient, the government has relaxed certain licensing and storage rules for Public Sector Undertaking Oil Marketing Companies (PSU OMCs) such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum.

Key Provisions of the Notification

1. Storage Permission at Petrol Pumps
   In each district of the 21 PDS SKO-free States/UTs, the state government or UT administration can designate a maximum of two service stations (preferably Company Owned Company Operated – COCO outlets) of PSU OMCs.
   These outlets are now allowed to temporarily store up to 5,000 litres of PDS SKO (non-bulk storage) in a shed within the premises, subject to safety conditions mentioned in the Chief Controller of Petroleum and Explosives Safety Organisation (PESO) circular dated 12 March 2026.
2. Exemption for Agents and Dealers
   Agents or dealers of PDS SKO are exempted from obtaining a separate licence in FORM XVIII for decanting kerosene from tankers into containers at the designated service stations.
3. Exemption for Tank Vehicles
   Tank vehicles licensed under FORM XIX are also exempted from needing FORM XVIII licence while supplying PDS SKO to these designated petrol pumps.
4. Strict Conditions
   • The permission is valid only for PDS SKO meant for household cooking and lighting purposes.
   • No service station can store more than 5,000 litres of PDS SKO at any time.
   • All safety norms, handling procedures, and operational guidelines issued by PESO must be strictly followed.
   • Proper records of receipt, storage, and distribution must be maintained by the concerned sales officer of the PSU OMC and kept available for inspection by district authorities and PESO officials.

The notification has come into force with immediate effect from March 29, 2026, and will remain valid for a period of 60 days or until further orders, whichever is earlier.

List of 21 PDS SKO-Free States / Union Territories Covered:

1. National Capital Territory of Delhi
2. Chandigarh
3. Haryana
4. Punjab
5. Dadra & Nagar Haveli and Daman & Diu
6. Puducherry
7. Andhra Pradesh
8. Andaman & Nicobar Islands
9. Rajasthan
10. Uttar Pradesh
11. Goa
12. Gujarat
13. Uttarakhand
14. Lakshadweep
15. Jammu & Kashmir
16. Ladakh
17. Telangana
18. Himachal Pradesh
19. Nagaland
20. Madhya Pradesh
21. Sikkim

This temporary measure is expected to strengthen the Public Distribution System in these regions and provide relief to households that still depend on kerosene for cooking and lighting, especially in remote or rural areas where LPG supply may face challenges due to global factors.

The Ministry has emphasised that all safety protocols will be rigorously enforced to prevent any mishaps during storage and distribution at petrol stations.

This notification reflects the government’s proactive approach to safeguard domestic energy needs and ensure energy security for citizens during uncertain times.