Kerosene distribution to resume in Kerala after nearly two years

After nearly two years of suspension, the Food and Civil Supplies department is set to resume the distribution of kerosene through ration outlets, following a fresh allocation of 5,676 kilolitres by the Centre.

The State aims at commencing distribution before May 15, but logistical and operational issues pose hurdles to the rollout.

The renewed allocation follows persistent appeals by Food and Civil Supplies Minister G.R. Anil to the Union Ministry of Consumer Affairs, Food and Public Distribution. Notably, the allocation comes at a time when the Centre has been gradually phasing out kerosene use to promote clean energy alternatives. Currently, 14 States and six Union Territories have discontinued the supply of kerosene through fair price shops.

Drastic reduction

Kerala’s kerosene allocation has seen a drastic reduction over the years, from 55,632 kilolitres in 2018-19 to 15,552 kilolitres in 2022-23. The State’s entire allocation lapsed last financial year after wholesale dealers were unable to lift the allocated quota due to expired licences and limited operational capacity.

Currently, the dearth of licensed wholesale kerosene dealers is emerging as a major challenge. While there were once two to three dealers per taluk, most districts now have only one licensed dealer, causing bottlenecks in distribution. With the dearth in wholesale dealers, retail ration dealers have been reluctant to procure the allocated kerosene, citing high transportation costs and inadequate commission margins.

Increase in commissions

Under such circumstances, the government has initiated stakeholder consultations to resolve such issues. However, any increase in commissions is likely to be passed on to consumers, potentially raising the price of kerosene from ₹63 to ₹67 a litre, according to sources.

Antyodaya Anna Yojana (AAY) card holders will be entitled to one litre of kerosene each, while Priority Households (PHH) and other ration card holders will receive half a litre.

The distribution of non-subsidised PDS kerosene intended for fishing and allied sectors will be finalised only after the public distribution through ration outlets is completed.