Kerosene Price in India

Kerosene, a versatile and affordable fuel, has been an integral part of Indian households, especially in rural areas. Despite the country’s progress in expanding electricity access, kerosene remains a primary source of energy in many villages. However, the rising kerosene price across different states in India, coupled with the government’s drive to reduce kerosene consumption, is sparking significant debates.

In this article, we will explore how kerosene prices vary across various states, the role of kerosene in rural areas, and the government’s strategy to reduce dependency on this fuel. By the end, you will have a clearer picture of why kerosene remains both a blessing and a curse for rural India and how the government plans to address this issue in the coming years.

Understanding Kerosene’s Role in Rural India

Despite the increasing reach of electricity, over 100 million people in India still rely on kerosene for cooking and lighting. In rural villages, kerosene serves as a vital resource for households that lack access to cleaner alternatives. These areas often face unreliable power supply, making kerosene the most dependable and affordable option for daily energy needs.

It is not just used for lighting lamps and stoves but also in agriculture. Kerosene-powered pumps are commonly used in irrigation, where access to electricity is limited. In remote parts of India, where infrastructure development lags behind, kerosene remains the most easily accessible source of energy.

Kerosene Price Across States in India: A Breakdown

Kerosene prices in India are subsidized by the government, but there are considerable variations from state to state. This price fluctuation is largely due to local taxes, transportation costs, and distribution policies. Here’s an overview of how prices differ across major Indian states:

• Delhi: In Delhi, the price of kerosene is around ₹32 per liter, the lowest among major states. This is largely because the government has prioritized subsidies for urban and rural consumers alike.
• Maharashtra: Maharashtra’s kerosene price stands at ₹34 per liter. Due to the state’s vast size and mixed urban-rural landscape, the government has focused on providing kerosene to rural areas at subsidized rates, although the price is slightly higher due to logistical costs.
• Tamil Nadu: In Tamil Nadu, the price of kerosene is approximately ₹36 per liter. Despite being an urbanized state, rural areas still rely heavily on kerosene, especially for agricultural needs. The state government, however, has been implementing schemes to distribute kerosene at lower prices.
• West Bengal: West Bengal has kerosene prices around ₹35 per liter. The state faces similar challenges as other eastern states in terms of rural consumption, and the government has set up a system to distribute kerosene through the Public Distribution System (PDS).
• Uttar Pradesh: Uttar Pradesh, one of the most populous states in India, has a kerosene price of ₹33 per liter. Kerosene is widely used in both rural and urban areas, especially in agriculture.
• Bihar: In Bihar, where many rural regions are still without reliable electricity, kerosene is priced at ₹38 per liter. The price is relatively higher due to transportation and distribution challenges in the state.

These prices may seem low, but for families in rural areas, even a small increase in the price of kerosene can be a significant burden. The rising costs, paired with decreasing subsidies, are increasingly becoming a challenge for low-income households.

Government’s Efforts to Reduce Kerosene Consumption

The Indian government has long recognized the environmental and economic challenges posed by kerosene. It has been working on strategies to reduce the country’s dependency on this fuel, aiming for a cleaner, more sustainable energy future. Here are some of the key government initiatives:

1. Promotion of LPG (Liquefied Petroleum Gas)

One of the most notable government initiatives to reduce kerosene consumption is the Pradhan Mantri Ujjwala Yojana (PMUY), launched in 2016. This scheme aims to provide free LPG connections to low-income families, particularly in rural areas. By offering an alternative to kerosene for cooking, the government hopes to cut down on the adverse health impacts associated with kerosene use, such as respiratory diseases caused by smoke inhalation.

The PMUY has been successful in enrolling millions of beneficiaries, but the challenge lies in ensuring continuous and affordable access to LPG. Despite this, the scheme has contributed to a significant reduction in kerosene consumption, as families begin to prefer cleaner cooking fuels.

2. Electrification of Villages

The Saubhagya Scheme, launched in 2017, aimed to provide electricity to every household in India. While this scheme has made strides in providing electricity to rural households, many areas still face power supply disruptions. In these regions, people continue to rely on kerosene for lighting and cooking.

As the electricity infrastructure improves, the government’s hope is that kerosene consumption will gradually reduce, especially in areas where power outages are less frequent.

3. Direct Benefit Transfer (DBT) for Kerosene

The introduction of the Direct Benefit Transfer (DBT) system for kerosene has been a critical step in curbing kerosene misuse and reducing dependency. Under the DBT system, the government directly transfers kerosene subsidies into the bank accounts of eligible beneficiaries. This system ensures better targeting and reduces leakages in the distribution process.

However, the challenge of ensuring that beneficiaries use the kerosene subsidy only for genuine purposes remains a topic of debate.

4. Subsidy Cuts and Gradual Price Hikes

In recent years, the government has been gradually reducing kerosene subsidies. While this has led to price increases, it is part of a broader strategy to encourage the use of alternative fuels. However, the price hikes have been met with resistance, especially from rural households that have limited access to other sources of energy.

These cuts are part of the government’s long-term strategy to reduce kerosene use in favor of cleaner, more sustainable fuels.

Rural Consumption and Its Impacts

In rural areas, where electricity and modern energy solutions are often still out of reach, kerosene consumption remains a necessary evil. However, the impact of widespread kerosene use cannot be ignored:

• Health Issues: Kerosene is harmful to human health, especially when used for cooking and lighting. The toxic fumes can cause respiratory problems, eye irritation, and long-term illnesses. Many rural families are exposed to these risks daily.
• Environmental Concerns: Burning kerosene contributes to air pollution, both indoors and outdoors. The carbon emissions associated with kerosene combustion are detrimental to the environment and contribute to global warming.
• Economic Burden: While the government subsidizes kerosene, its price remains a burden for many households. Rural families often spend a significant portion of their income on kerosene, which could otherwise be allocated to more essential needs.

What’s Next for Kerosene in India?

The future of kerosene in India depends largely on the success of the government’s ongoing initiatives. As cleaner alternatives like LPG and electricity become more accessible, the role of kerosene will diminish over time. However, this transition will not be instantaneous, and much depends on the infrastructure, economic policies, and the overall political will to tackle this issue.