Kerosene Return: Global Fuel Crisis Sparks Discussion on Alternative Energy Sources

The escalating geopolitical tensions in the Middle East, particularly the conflict involving Iran, have raised concerns over the stability of global energy supply chains. This crisis has led to potential shortages of essential fuels, including Liquefied Petroleum Gas (LPG). In response, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, recently indicated that the government is monitoring the situation and considering various alternative fuels. These alternatives include biomass, RDF pellets, coal, and the potential re-introduction of kerosene into the energy mix.

Kerosene, once a staple in Indian households, served as the primary fuel for cooking and lighting for decades. It was widely distributed through the Public Distribution System (PDS) at subsidized rates. However, over the last ten years, a strategic shift in India's energy policy led to its gradual phase-out from kitchens. The current global scenario, characterized by rising costs and supply constraints of cleaner fuels, has brought the discussion around this traditional fuel back to the forefront of energy security strategies.

Statistical Decline in Consumption Patterns

According to the 'Energy Statistics India 2024' report released by the National Statistical Office (NSO), kerosene consumption in India has witnessed a sharp decline. Between the fiscal years 2013-14 and 2022-23, the average annual consumption of kerosene dropped by approximately 26%. This significant reduction is attributed to the government's aggressive push towards cleaner energy alternatives and the systematic reduction of kerosene allocations to states. The data reflects a transition where kerosene moved from being a mass-market essential to a niche industrial fuel.

Transition to Clean Energy and LPG Expansion

The primary driver behind the disappearance of kerosene from Indian kitchens was the large-scale implementation of the Pradhan Mantri Ujjwala Yojana. By providing LPG connections to millions of households, the government aimed to reduce the health hazards associated with indoor air pollution caused by burning kerosene and solid biomass. As LPG is more efficient and emits fewer greenhouse gases, it quickly replaced kerosene stoves. The environmental benefits of this transition were a key factor in the policy decision to discourage kerosene usage for domestic purposes.

Impact of Rural Electrification and Technology

Beyond cooking, kerosene was historically used for lighting in rural areas through lanterns and lamps. The success of the Saubhagya scheme and other rural electrification initiatives played a crucial role in eliminating this dependency. As electricity reached remote villages, consumers shifted to LED bulbs and tube lights. Plus, the proliferation of affordable solar-powered lamps, emergency lights, and inverters provided more reliable and cost-effective lighting solutions, rendering kerosene-based lighting obsolete in most parts of the country.

Impact of Subsidy Withdrawal and Market Pricing

A major turning point in kerosene's history occurred in 2019 when the government decided to eliminate subsidies on the fuel. This move was intended to curb leakages and diversion of subsidized kerosene for adulteration with diesel. Following the withdrawal of subsidies, the price of kerosene in the open market rose to align with international crude oil rates, while this price hike made kerosene economically unviable for low-income households compared to other energy sources, leading to a near-total abandonment of the fuel for domestic use.

Technical Production and Industrial Applications

Kerosene is produced through the fractional distillation of crude oil in refineries. During this process, crude oil is heated to specific temperatures, allowing different hydrocarbons to be separated based on their boiling points. Kerosene is a middle distillate, positioned between gasoline (petrol) and diesel in the distillation column. While its domestic use has dwindled, it remains a critical component in the aviation industry as the base for Aviation Turbine Fuel (ATF). It also finds extensive use as a solvent, a fuel for industrial burners, and in the manufacturing of certain chemicals and paints.