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Why is Kerosene Blue?

Published in Fuel Regulation 2 mins read

Kerosene, specifically the type distributed under the Public Distribution System (PDS), is dyed blue primarily to distinguish it from kerosene sold in the open market. This coloring serves a crucial purpose in preventing the diversion and black marketing of subsidized fuel.

The Purpose of Blue Dye in Kerosene

The distinctive blue color of PDS kerosene is not a natural property but an intentional addition. This dyeing process is a government measure designed to:

  • Differentiate Subsidized Fuel: PDS kerosene is sold at a significantly lower, subsidized price to make it affordable for eligible consumers. Open market kerosene, conversely, is priced much higher, reflecting market rates. The blue dye makes it easy to visually identify the subsidized product.
  • Prevent Diversion and Black Marketing: Without a clear color distinction, unscrupulous elements could easily purchase low-cost PDS kerosene and then resell it in the open market at higher prices, undermining the subsidy program and creating an artificial shortage for genuine beneficiaries. The blue color acts as a deterrent and a tool for enforcement agencies to check illegal sales.
  • Ensure Fair Distribution: By making PDS kerosene visibly different, authorities can better monitor its distribution and ensure it reaches the intended beneficiaries, preventing it from being mixed with or passed off as more expensive open market fuel.

Distinguishing Kerosene Types

The table below highlights the key differences between the two types of kerosene, emphasizing the role of color:

Feature PDS Kerosene Open Market Kerosene
Color Blue-dyed White (Colorless)
Price Subsidized (Lower) Market Rate (Higher)
Purpose Targeted distribution for specific consumers General commercial sale
Regulation Heavily regulated to prevent misuse Market-driven pricing and availability

The practice of dyeing kerosene blue is an effective administrative strategy to maintain the integrity of welfare programs and ensure that essential commodities reach those who need them most, at affordable prices.