The Government of India has maintained the retail selling price of Public Distribution System (PDS) Kerosene at a zero under-recovery level across the country, effective from March 1, 2020. A press release on this initiative was issued on March 17, 2025.
The government allocates PDS kerosene for cooking and lighting purposes. Additionally, states and union territories (UTs) have been empowered to draw a one-month quota of non-subsidized PDS kerosene annually for special needs like natural disasters and religious events.
Recognizing the polluting nature of kerosene, the allocation of PDS kerosene has been rationalized over time. Furthermore, the government incentivized states through Direct Benefit Transfer for Kerosene (DBTK) for the voluntary surrender of PDS kerosene allocations between 2015-16 and 2019-20. As a result of these efforts, 13 states have become kerosene-free by the end of Fiscal Year 2023-24.
India is actively involved in global initiatives to drive the clean energy transition. It was a founding member of the International Solar Alliance in November 2015 and joined the Global Biofuel Alliance during its G20 presidency in September 2023. During India Energy Week 2025, the country hosted a Ministerial Roundtable on Clean Cooking to share insights from its flagship Pradhan Mantri Ujjwala Yojana (PMUY).
Multi-Pronged Strategy for Clean Energy Promotion
The government has adopted a comprehensive strategy to promote clean energy, which includes:
- Encouraging the use of natural gas as a fuel and feedstock to increase its share in the economy.
- Promoting the use of renewable and alternate fuels like ethanol, second-generation ethanol, compressed biogas, and biodiesel.
- Enhancing refinery processes for greater efficiency and cleaner fuels.
- Promoting measures to improve energy efficiency and conservation.
- Implementing policies to boost the domestic production of oil and natural gas.
- Launching the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative to promote the use of Compressed Bio Gas (CBG) as an automotive fuel.
Universal Electricity Access and Clean Cooking Initiatives
India has achieved near-universal electricity access for lighting through the Saubhagya and Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) schemes, providing a cleaner alternative to kerosene for lighting.
To provide access to clean cooking fuel for poor households, the Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May 2016. To make Liquefied Petroleum Gas (LPG) more affordable and encourage sustained usage, the government introduced a targeted subsidy for PMUY consumers in May 2022, which was further increased in October 2023.
Affordable LPG for Ujjwala Beneficiaries
Currently, over 10.33 crore Ujjwala beneficiaries across the country are receiving 14.2 kg LPG cylinders at an effective price of ₹503 per cylinder in Delhi, after a targeted subsidy of ₹300 per cylinder. This subsidy is applicable for up to 12 refills per year.
The government has undertaken various measures to increase awareness about the benefits of LPG, including:
- Organizing awareness campaigns and enrollment drives.
- Utilizing Out of Home (OOH) advertising, radio jingles, and Information, Education, and Communication (IEC) vans.
- Conducting LPG Panchayats to educate on safe usage.
- Facilitating Aadhaar enrollment and bank account opening for PMUY beneficiaries.
- Simplifying the process for obtaining LPG connections through various channels, including online applications.
- Offering options like 5 kg Double Bottle Connection (DBC) and swap options.
- Providing provisions for migrant families to avail new connections.
Furthermore, Oil Marketing Companies (OMCs) have significantly expanded the LPG distributor network, especially in rural areas, commissioning 7,959 new distributorships since the launch of PMUY, with 93% catering to rural areas. As a result of these interventions, LPG access in India has improved from 62% in April 2016 to near saturation today.
