Government has scrapped kerosene imports by private companies and decided that only state-run firms will import the fuel to end its adulteration in diesel.

Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and IBP will now be authorised to import kerosene and any company other than these four state-run oil marketing firms wanting to retail kerosene, will have to obtain the fuel from State Trading Corporation.

The notification, issued this week, amends the previous government policy, as per which licences were given to private firms to import kerosene and sell to bulk and retail consumers.

The petroleum ministry had last month asked the commerce ministry to disallow kerosene imports by the so-called parallel marketing firms as kerosene, surreptitiously used for spiking in diesel, was eating into the sales of diesel even though vehicle population increased in the country.

Overall consumption of diesel fell by 3.7 per cent in the first six months of fiscal 2003-04 but the impact was much worse in coastal areas because it is more lucrative to mix at import locations than moving it in the mainland at a cost.