Public Distribution System (PDS) Kerosene
Why in News?
Public Distribution System (PDS) Kerosene is in the news because of a significant policy shift on March 28, 2026, where the Indian government announced the total phase-out of PDS kerosene in five more states—Uttar Pradesh, Bihar, West Bengal, Odisha, and Madhya Pradesh. This move follows the success of the PM Ujjwala Yojana (PMUY) in providing cleaner cooking alternatives.
Key Information
- Purpose: Traditionally provided through Fair Price Shops (FPS) to low-income households for cooking and lighting at highly subsidized rates.
- Allocation Mechanism: The Central Government allocates a specific quota to States/UTs, which then distribute it to Ration Card holders.
- Pricing: Prices are determined by the Centre but vary slightly across states due to local taxes and transportation costs.
- The "Blue" Marker: PDS kerosene is dyed blue to distinguish it from non-subsidized (white) kerosene and to prevent illegal diversion for adulterating diesel.
- Major Drivers for Phase-out:
- PM Ujjwala Yojana: Has provided over 10.5 crore LPG connections, drastically reducing the demand for kerosene.
- Saubhagya Scheme: Universal household electrification has largely replaced the need for kerosene lamps.
- Environmental Health: Kerosene emits high levels of particulate matter and carbon monoxide, contributing to indoor air pollution.
- Current Usage: In states where it is still available, it is primarily used by traditional fishermen for outboard boat engines and in extremely remote hilly/tribal areas lacking reliable electricity.
- Direct Benefit Transfer (DBTL-K): In some regions, kerosene is sold at market rates, and the subsidy is transferred directly to the consumer's bank account to curb leakage.
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