LPG Supply Conundrum: Centre allows kerosene, coal & biomass

Amid concerns over disruptions in energy supplies due to the ongoing conflict in West Asia, the Union government has permitted the temporary commercial use of alternative fuels such as kerosene, coal and biomass to ease pressure on liquefied petroleum gas (LPG) supply channels. The move comes following reports of LPG shortages in several parts of the country.

The measure is aimed at supporting commercial establishments, particularly restaurants and hospitality units, that rely heavily on LPG for their daily operations.

Compared to LPG, which is considered a cleaner fuel, kerosene, coal and biomass are more polluting and have greater environmental impacts. However, the government has allowed their limited use as a short-term measure during the crisis.

According to Sujata Sharma, Joint Secretary at the Ministry of Petroleum and Natural Gas, the Ministry of Environment, Forest and Climate Change (MoEFCC) has advised State Pollution Control Boards to permit the use of biomass, refuse-derived fuel (RDF) pellets, kerosene and coal as alternative fuels for the hospitality and restaurant sector for a period of one month.

Sharma made the announcement during an inter-ministerial briefing on India’s energy situation. The meeting was attended by senior officials from the ministries of petroleum, shipping, external affairs, and information and broadcasting, who reviewed the steps being taken to safeguard the country’s energy interests amid the geopolitical crisis.

To ensure adequate supply of alternative fuels, the Centre has also taken steps to increase kerosene availability. The government currently allocates nearly one lakh kilolitres of kerosene to states every quarter. In addition, an order has been issued to release an extra 48,000 kilolitres of kerosene to state governments, which will now identify eligible beneficiaries for distribution.

The coal ministry has also directed Coal India Limited and Singareni Collieries Company Limited to increase coal allocations to states so that supplies can reach small and medium enterprises and other consumers facing fuel shortages.

Meanwhile, the government said efforts are underway to maintain steady LPG supplies for domestic consumers. Officials stated that domestic LPG production has risen in recent days, increasing from 25 percent growth earlier in the week to about 28 percent.

The government’s contingency measures come as tensions escalate in West Asia following the conflict involving the United States, Israel and Iran, which has disrupted energy flows through the Strait of Hormuz, a key route for global oil supplies and a critical source of India’s energy imports.