OilMin asks oil cos to curb adulteration

Despite the introduction of a series of technological and institutional measures, the ministry of petroleum and natural gas is concerned over the growing menace of adulteration of petroleum products.

Similarly, the ministry is also worried over the diversion of kerosene, to be sold through the public distribution system, which goes on unabated. The diversion is being carried out due to huge price difference between PDS kerosene and petrol and diesel.

The ministry has asked the oil marketing companies to further step up their efforts to curb adulteration of petroleum products.

Ministry sources told Business Standard that the government and the OMCs had launched regular and surprise inspections of retail outlets, tamper proof tank-truck locking systems, the import of SKO by private parties has been canalized through OMCs.

Moreover, the OMCs have created a separate wing responsible for monitoring all activities and operations to curb adulteration. To contain adulteration further, marketing discipline guidelines have been issued in 2005 under which OMCs take penal action against the erring dealer.

According to data compiled by the ministry, the number of dealers reported to have been involved in malpractices have increased from 451 in 2005-06 to 1,467 in 2008-09 in case of Indian Oil Corporation; and from 318 in 2005-06 to 989 in 2008-09 in case of Hindustan Petroleum Corporation.

However, in case of BPCL, the number of delaers involved in wrongdoings marginally reduced to 1,029 during 2008-09 from 1,050 during 2005-06.

A senior member of the Parliamentary Standing Committee on Petroleum and Natural Gas, who did not want to be quoted, said that termination of dealers by OMCs was quite less against the actual number of cases.

In case of IOC, against the 1,467 cases of malpractices during 2008-09, there were only 85 terminations while HPCL terminated dealership of 36 against 989 cases of malpractices during the same period. Further, BPCL terminated the dealership of a paltry 17 dalers against a total 1029 cases.

On the automation of retail outlets, said ministry sources, 79 per cent of automation of outlets selling more than 200 kilolitre per month had been completed as on March 31.