Press Information Bureau
Government Of India
Ministry of Petroleum & Natural Gas
(01-August, 2016 17:53 IST )

DBT in Kerosene to be implemented in 39 districts during 2016-17


The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the Government has authorized the Oil Marketing Companies (OMCs) to increase the Retail Selling Prices of PDS Kerosene by 25 paise per litre per month (excluding  VAT as applicable in different States/Union Territories) for 10 months.

       The total amount of under-recovery incurred on sale of PDS Kerosene for the last three financial year is given below :

(Rs. in Crores)




PDS Kerosene#





# Includes Subsidy under “PDS Kerosene and Domestic LPG Scheme, 2002” & “Freight Subsidy (for Far-Flung Areas) Scheme, 2002” on payment basis.

           With a view to reach the PDS kerosene to the targeted beneficiaries, it has been decided to implement Direct Benefit Transfer in Kerosene (DBTK) during 2016-17 in 39 districts identified in consultation with State Governments spread across nine  States  of the country, namely; Punjab, Gujarat, Himachal Pradesh, Madhya Pradesh, Chhatisgarh, Rajasthan, Jharkhand, Haryana and Maharashtra. Other States/UTs have also been requested to join the Scheme.  It has also been decided that the States would be given cash incentive of 75% of subsidy savings during the first two years, 50% in the third year and 25% in the fourth year. In case the States voluntarily agree to undertake cuts in kerosene allocation, beyond the savings due to DBT, a similar incentive would be given to those States/UTs. Preparation to implement DBTK by the participating States is reviewed regularly.


The Government of India allocates PDS Kerosene to States/UTs on quarterly basis for distribution under PDS for cooking and illumination only.  Further distribution within the States/UTs through their PDS network to various categories of consumers as per their respective criteria, is the responsibility of the concerned States/UTs.  In addition, the Government has allowed the States/UTs to draw one month quota of Kerosene at non-subsidized rates during each financial year w.e.f. 2012-13 for special needs such as natural calamities, religious functions, fisheries, various ‘yatras’, ‘melas’ etc.   States/UTs can also seek further additional allocation of non-subsidized SKO from this Ministry after exhausting this one month’s quota.

      In addition to above, with a view to ease the availability of white Kerosene (Market Priced Kerosene) for sale in the open market, the Central Government has amended the Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993.  It is expected that this will reduce demand for diverted PDS Kerosene by improving availability of non-PDS Kerosene in the open market and will thus meet the demand of Kerosene for various legitimate end uses for the industry and for individual consumption by those who can afford it at market price.


OMCs have informed that there is no reported shortage of PDS Kerosene in the country, including Jharkhand.



(Release ID :148139)

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