Marketing Discipline

Guidelines

for RO / SKO Dealerships of

Public Sector Marketing Companies

Effective 8th January 2013

MARKETING DISCIPLINE GUIDELINES 2012

RETAIL OUTLET DEALESHIP / SUPERIOR KEROSENE OIL DEALERSHIP

INTRODUCTION
The evolution of oil industry in India can be traced to the early 20 th century
when the industry began its operations through Superior Kerosene Oil (SKO)
dealerships. In due course of time the petroleum business prospered and expanded
and by independence the industry had commenced marketing of Motor Spirit (MS) and
High Speed Diesel (HSD). The network developed under private oil companies like
Burmah Shell, Caltex and ESSO. In 1958, Indian Oil Corporation (IOC) was formed
giving birth to the entry of the public sector in the petroleum business. Thereafter with
the nationalization of Burmah Shell, Caltex and ESSO in the 1970s, the concept of
public sector oil companies came into being and the petroleum business prospered
witnessing substantial growth.

In 2001-02 the public sector oil marketing companies (OMCs) had a network
around 16000 retail outlets (ROs), 9000 LPG distributorships and 6500 SKO
dealerships. The network has seen tremendous expansion to nearly 41000 RO
dealerships, 11100 LPG distributorships and 6600 SKO dealerships as on 01.01.2012.
The deregulation of the petroleum sector witnessed the entry of private players like
Reliance, Essar and Shell in the petroleum sector who between themselves have setup
nearly 3000 ROs. However, the dominance of the OMCs continued unabated in the
retail market. The Marketing Discipline Guidelines (MDG) which were formulated for
the first time in 1981-82 helped the OMCs to maintain discipline in the operation of
retail network and provide high customer service standards.

In recent times the Government as well as Industry has felt the need to review
the MDG in view of the changing circumstances and market scenario. The need to set
very high customer service benchmarks for OMCs and for their dealer network is the
need of the hour. In view of this, after discussions at various forums, these guidelines
have been formulated.

INDEX
Chapter
No.

Subhead

1
1.1
1.2
1.3
1.4
1.5
1.6
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
3
3.1
3.2
3.3
4
4.1
4.2
4.3
4.4
5
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9

Contents

Page
NO.

Procedure for handling of products at Retail

Outlets by dealers
Receipt of product
Decanting of product
Stock / price controls
Quality / Quantity control measures
Observance of statutory & other regulations
Customer service & general amenities
Industry Guidelines for Sample collection and
testing
Preamble
Drawal of samples
Drawal of samples by dealer
Drawal of samples by Oil Company
representatives
General procedure for drawl of Samples
Sample containers to be used
Sealing of sampling containers
Sample tags
Retention of samples
Sample testing & results
Handling of MS / HSD / SKO at Companys
storage points and Duties of Oil Companies
Quality / Quantity checks
Sealing / GPS
Training of dealer / dealers staff
Maintenance of Companys equipments at
Retail Outlets
Dispensing units Standardizations of report
Maintenance of pumps & other equipments
Rectification of defects in Dispensing units /
pipeline / tanks
Detection of presence of water in tanks
Type of Irregularities at Retail Outlets ( MS /
HSD) and SKO-LDO Dealerships
MS / HSD
Adulteration of product
Short delivery of products
Totalizer seals found tampaered with
Additional / unauthorized fittings / gears found
in dispensing units
Unauthorized storage facilities / Interconnection
Unauthorized purchase / sales
Tank lorry carrying unauthorized product found
decanting product into RO tanks
Refusal by the dealer to allow drawl of sample
or carry out inspection
Non-availability of reference density

5
5
5
7
8
9
11
13
13
13
15
16
19
21
22
22
22
23
25
25
27
27
28
28
28
29
30
31
31
31
32
33
33
33
34
34
34
34
2

5.1.10
5.1.11
5.1.12
5.1.13
5.1.14
5.1.15
5.1.16
5.1.17
6
7
7.1
7.2
7.3
7.4
7.5
7.6
7.6.1
7.6.2
8
8.1
8.2
8.3
8.4
8.5.1
8.5.2
8.5.3
8.5.4
8.5.5
8.5.6
8.5.7
8.5.8
8.6
8.7
8.8
8.9
8.10

Selling of normal MS/HSD as branded fuel

Stock variation of MS/HSD beyond permissible
limits
Non-maintenance of inspection / stock / sales /
other records
Overcharging in authorized selling prices
Non provision of air, clean toilet, telephone,
first aid, etc.
Non display of authorized selling prices of
products
Dealer operating the automated RO in Manual
Mode without authorization
Miscellaneous
Notes
Duties of SKO Dealers: Kerosene supplies
under PDS
Mobile Laboratory
Introduction
Deployment
Inspection at Retail Outlets
Testing of Samples
Sampling Procedure
Clinical Tests
Certification
Note
Action to be taken by OMC under MDG
Note
Critical Irregularities
Major Irregularities
Minor Irregularities
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Notes
Authority to Take Action
Appellate Proceedings
Irregularities Malpractices in respect of SKO
Dealers
Annexure 1 Density Record
Annexure 2 Sample Label Supply Location
Annexure 3 Sample label TL retention sample
Annexure 4 Sample label sample drawn from
RO
Annexure 5 Test to be carried out onMS / HSD
Samples
Annexure 6 Maintenance report
Annexure 7 Method for determination of
Ethanol content
Annexure 8 Shrinkage allowance sample
calculation Illustration

35
35
36
37
37
37
37
38
38
39
40
40
40
40
40
41
41
42
43
44
44
44
44
45
46
46
46
46
47
47
47
47
48
48
49
49
50
51
52
53
54
55
56
58
62
3

Annexure 9 Method for allowing Shrinkage

Allowance in Stock Variation
Annexure 10 TVA Loss Sample calculation
Illustration
Annexure 11 Mobile Lab Sample Tag
Annexure 12 Sample Details for MS
Annexure 13 Sample Details for HSD

63
64
65
66
68

CHAPTER - 1

1.

PROCEDURE FOR HANDLING OF PRODUCTS AT RETAIL OUTLET BY

DEALERS

It will be the responsibility of the Dealers to sell product of correct Quality &
Quantity and provide excellent customer service.

1.1

RECEIPT OF PRODUCT

At the time of arrival of tank lorry, the dealer should match following details
mentioned on the Invoice with physical / actual parameters:

i)

Tank Lorry No.

ii)

Seal Number / Security Lock Number

iii)

No. of compartments and quantity/product contained therein

iv)

The time tank lorry left Supply Point

v)

Recorded Density at 15 Degree C

vi)

Dip rod with calibration certificate and other details as advised from
Company from time to time.

1.2

DECANTING OF PRODUCT

The dealer to undertake the following actions:

i)

Park the tank lorry on level ground allow 10 minutes settling time.
Before starting the operation on the tank lorry, proper earthing /
bonding should be ensured. Portable fire extinguisher of DCP type
should be kept near to tank lorry at a suitable distance. All the tank
lorry discharge hoses should comply with all the safety requirements,
and under no circumstances, plastic/PVC hosepipes should be used.

ii)

Check condition of the seal / security lock on the tank lorry delivery
manifold & manhole covers against those mentioned in the invoice.
5

iii)

Release master valve levers to ensure product fills the pipelines, where
tank lorries are normally calibrated with lines full, before checking dips
(Refer Calibration Certificate).

iv)

Dealer to check that the Density of product @ 15 Degree C using ASTM

Tables (53B) is within +/- 3.0 Kg/M3 as compared with the challan
density for ascertaining quality of product.

v)

Ask the tank lorry driver to produce certificate of calibration which

would mention product level and proof level details.

vi)

Check Weights & Measures markings on the dip rod at the bottom as
well as at the proof level.

As an additional check, verify dip rod

calibration with an standard measuring tape.

vii)

Check dips of the product in all compartments with the dip rod duly
certified by Weights & Measures Department and provided with the tank
lorry. Also check for presence of water in each compartment by water
finding paste. Before commencing tank lorry decantation operation, the
sales from the concerned underground tank at the Retail outlet should
be stopped till the completion of decantation.

viii)

Having ascertained the quantity of the product by the above method,

draw samples after draining approx. 20 liters of the product from the
manifold from each compartment in a clear glass container for
density/temperature for quality checks.

ix)

In case of doubt as to the quality of product, contact the Supply

Location/concerned Area Field Officer for further instructions.

x)

After having ascertained quality as per (vii to ix) above, and prior to
decantation, the dealer/his representative shall draw bottom samples
from the Tank lorry and follow instructions as given in 3 tier sampling
procedure (as explained in chapter-2).

xi)

In the event of dip being short as per calibration certificate/water being

detected with water finding paste, the short dip/quantity (including due
to removal of water) should be made up by filling to the correct level
through the dispensing pump and the quantity so filled should be
recorded on the back of all the Invoice copies. Chamber-wise observed
dip and quantity filled through dispensing unit for getting correct level
to be recorded. In case the RO is dry at the time of receipt, measuring
of shortage to be done by drawing product from other compartment and
using calibrated measure. Shortages so recorded should be signed both
by

dealer/dealers

representative

and

tank

lorry

driver.

After

ascertaining quality & quantity, decant the product in the correct

underground tanks.

xii)

After decanting the product, ensure that the tank lorry is fully emptied
of the product before releasing the tank lorry.

xiii)

Make appropriate entries in the stock register/stock display board.

xiv)

After decanting the product into the tank, at least 50 liters of product
(to displace the line content) should be dispensed through the pump
before taking sample from pump nozzle for ascertaining the density of
the composite product in the storage tank after receipt. The density at
15 Degrees C, thus ascertained should be recorded in the density
register.

The density records should be maintained in the format

attached as Annexure 1.

1.3

STOCK / PRICE CONTROLS

i)

Dealer to display opening stock/authorized selling prices of products.

ii)

Dealer to maintain a daily stock-register provided by the company for all

petroleum products.

In

addition

to

the

above,

daily

record

of

pump

meter

reading

and

product/water dips of each tank, taken in the morning separately, should be

maintained.

1.4

QUALITY / QUANTITY CONTROL MEASURES

1.4.1 QUALITY

a)

Dealer to keep filter paper (Whatman 2) to check quality of MS.

The filter paper should also be made available to customers on
demand if they wish to satisfy themselves of the quality of MS. A
suitable message to this effect should be included in Customer
Education Board / Poster to be prominently displayed at the
Retail Outlet.

b)

Dealer to maintain record of water dip on daily basis which will

form a part of the daily stock register. In case presence of water
is detected, he should immediately report to the controlling
company office for taking necessary action.

c)

Dealer shall draw product sample from the pump nozzle in the
morning and record the morning opening density @ 15 deg C
before commencing daily sales.

1.4.2 QUANTITY

a)

The dealer shall check on daily basis the Weights & Measures
Dept. seal in the Metering Unit / Totaliser of the dispensing units
for correctness and also that Weights & Measures certification for
the unit is valid. In case W&M / totaliser seals are found
tampered, sales through the concerned dispensing unit should be
suspended forthwith and matter reported immediately to oil
company. Sales to remain suspended till the seals are replaced.

b)

Dealer to keep a standard 5 litr. measure duly verified by the

Weights & Measures Department for exclusive use of pump
testing at the retail outlet.

c)

All measure used for dispensing bulk lube oil in the pump island
and service bays must be duly stamped by Weights & Measures
Department.

d)

It is the responsibility of the dealer to ensure the correct supply

of fuel to the customers all the time. All the nozzles of the
Dispensing units should be checked for the correct delivery on
daily basis before commencement of sales. The quantity used for
testing to be recorded in the stock register. In case of variation
in delivery of dispensing units, the same should be immediately
notified to Weights & Measures Department, as also to the
Controlling Oil Company Office. Re-stamping will be done by the
Weights & Measures Department.

Until re-stamping is carried

out and delivery is set right, the dealer should not operate the
Dispensing unit.

e)

Dealer to carry out visual checks on a daily basis for any leaks in
pump,

delivery

hose/nozzle.

Such

leaks,

if

any,

must

immediately be reported to the Oil Company for rectification.

f)

Dealer to ensure that after each delivery from the pump, the
pump meter is brought back to zero before commencing the next
delivery. A message to this effect should be displayed on each
pump unit and the Zero setting should be shown to the
customer, before start of each delivery by the pump attendant.

1.5

OBSERVANCE OF STATUTORY AND OTHER REGULATIONS

i)

All statutory rules and regulations in connection with storage and sale of
petroleum products must be followed and implemented, such as
maintaining stock / sales & density records, display of daily stock, price
board etc.

ii)

To observe rules and regulations of the Petroleum & Explosives

Standards Organisation.

iii)

Dealer will not buy, sell or exchange petroleum products with any other
dealer or anybody other than the principal Oil Company.

iv)

Dealer to maintain files wherein all Inspection Reports, correspondence

received from Oil Company from time to time, Test Reports, copies of
Invoices etc be available at the retail outlet for ready reference at all
times.

v)

The provisions contained in the Motor Spirit and High Speed Diesel
(Prevention of Malpractices in Supply & Distribution) Order issued by the
Government of India (or any amendment or revision thereof) and
instructions issued by the Oil Company / State Govt authorities etc from
time to time shall be strictly adhered to and all concerned records shall
be maintained and produced to Inspecting officials on demand

vi)

It is mandatory on the part of the dealers to have calibrated

Hydrometers/Thermometers and ASTM Density Conversion Table and
any other testing kits / equipments as applicable. These testing kits /
equipments shall be maintained in good working condition and made
available to inspecting authorities on demand.

vii)

RO dealer shall monitor the movement of the Tank Lorry which is

carrying supplies for his RO through VTS using the link provided.

In

case the dealer observes any deviation, supply location should be

informed immediately before accepting the tank lorry.

Further action

should be taken after recording the observed deviations and instructions

of concerned OMC officials.

viii)

In case of automated ROs, dealers will be responsible to ensure that

automation is properly working at his RO as these ROs are designed for
No automation, No Operation(NANO). In case of any malfunctioning,
the dealer must report it to the authorized official of OMC immediately
and take further action as per the direction of the concerned OMC
official.

10

ix)

It must be ensured that there is a power backup facility, i.e. generator

or UPS to take care of power failure.

This is important for proper

functioning of automated ROs, electronic totaliser, etc.

1.6 CUSTOMER SERVICES AND GENERAL AMENTITIES TO BE PROVIDED

BY THE DEALER

i)

Retail Outlet Dealer should ensure quality product at correct quantity

and correct price.

ii)

Retail Outlet dealer would provide Air facility to customers during the
operating hours of the Outlet.

iii)

Retail outlet Dealer should ensure prompt service and courteous

behaviour at all times.

iv)

A suggestion/complaint book must be maintained and made readily

available to customers on demand. A message indicating availability of
this book must be prominently displayed.

v)

The working hours of the retail outlet should be prominently displayed.

Holiday notices should be displayed well in time.

vi)

RO Dealer to ensure availability of clean Toilet in the RO premises.

vii)

RO Dealer should ensure availability of telephone facilities in the RO

premises.

viii)

Dealer must prominently display his Name/Tel. No. and also Name/Tel.
No. of the Oil Company personnel who are to be contacted by the
customer in case of complaints.

In addition, the dealer would display

messages on the Customer Service Cell and posters on Customer

Education as provided by the respective Oil Companies from time to
time.

11

ix)

First Aid Box be made available by the dealer, with necessary valid
medicinal aids.

x)

Dealer to ensure that the outlet is kept adequately illuminated and clean
as per housekeeping standards laid down by the Oil Companies. All
required facilities should be adequate.

x)

Safety equipments at Retail Outlet should be provided as per the

statutory requirements and maintained in good working condition.
Dealer to be trained in operating the equipments and trained staff
should be available to handle and operate the same.

12

CHAPTER -2

INDUSTRY GUIDELINES FOR SAMPLE COLLECTION AND TESTING

2.1

PREAMBLE

The basic objective of the 3-tier sampling procedure is to ensure that MS and
HSD sold by retail outlets is the same product, which has been supplied to
them by their principal oil companies.

To achieve this objective, results of the samples will be interpreted on the basis
of reproducibility/permissible limits for which sampling procedure has to be
followed both at supply locations as well as at retail outlets.

The implementation of this sampling procedure will also help in establishing

whether the malpractice / adulteration, if any, has taken place at the retail
outlet, during transportation or at supply locations.

2.2

DRAWAL OF SAMPLES

Samples will be required to be drawn at:

1)

Supply locations

2)

Retail outlets

2.2.1

AT SUPPLY LOCATIONS :

(i)

Every day, Supply locations should collect minimum of 4 X 1 litre

samples of MS and 2 X 1 litre samples of HSD from the TLF from
which the tank lorries are being filled.

Industry Quality Control

Manual (IQCM) procedures should be followed for sampling.

(ii)

Wherever there is a switchover of storage tank, sample as above

will be taken again from TLF, after giving sufficient time for
flushing out earlier product in the pipeline.
13

(iii)

Details of samples, as per Annexure 2 shall be pasted on the

sample container and the samples will be retained for a minimum
period of 30 days as per IQCM. The samples should have clearly
identifiable sample numbers for these to be traced easily. The
storage locations should also keep a record of these samples.

(iv)

Supply Locations should give the details of Density @ 15 Degree

C, TLF point and the storage tank No. from which TL is filled, and
time of release of tank lorry on the Delivery/Invoice challan.

2.2.2

AT RETAIL OUTLETS

At the Retail Outlets, samples are required to be drawn by the

following:

2.2.2.1

By the dealer / his representative on receipt of each supply

through tank lorries at the retail outlet.

2.2.2.2

Persons / agencies authorized to draw samples are :

Oil Company officials
Mobile labs
Agencies authorized by oil companies
Any other authority statutorily empowered to do so

Besides random sampling, oil companies are enjoined to also draw samples in
case of stock variation beyond permissible limits, density failure, filter paper
test failure and also during special drives/campaigns or in case of

specific

complaint against the retail outlets.

Samples are to be drawn from nozzle (s) of the dispensing units from all tanks
of both MS and HSD by the persons / agencies as referred above.

All the inspecting officials shall bring their own Aluminum containers with
wooden boxes for drawing samples. They will pay for the cost of samples
collected by them and obtain cash memo for the same.

14

2.3

DRAWAL OF SAMPLES BY DEALER / HIS REPRESENTATIVE:

On receipt of tank lorry, dealer/his representative should follow the steps as

detailed in 1.2 above.

If density check is found to be within permissible limits as mentioned in para

1.2, the dealer is required to follow the procedure for drawal of sample as
given below:

Dealer / his representative should draw 2 x 1 litres of MS and / or 1 x 1 liters

of HSD bottom samples (Composite samples proportionate to the quantity of
the product received in each compartment after removing a minimum of 20
liters from each compartment.

Before drawing the samples the empty

Aluminum containers should be rinsed with the same product from the tank
lorry, seal and label the same as per details given in Annexure 3, before
unloading the tank lorry.

The sample label should be jointly signed by dealer /

his representative and tank lorry driver.

The dealer should retain this sample

as retained tank lorry sample.

The dealer should retain the tank lorry sample in respect of the last two loads
for each storage tank of MS and HSD.

The transporter will have the option to obtain another set of the same sample
(2 x 1 liters MS and / or 1 x 1 liter HSD- duly labeled and jointly signed by the
dealer/his representative and tank lorry driver). On such request from the
transporter, the dealer should hand over this set of samples, against payment
to the tank lorry driver / representative of the transporter for retention by the
transporter. The transporter/ his driver will also have to pay a deposit of Rs.
300/- per sample container to the dealer. In such cases, the transporter will
have to make his own arrangements for safe keeping and custody of his
retention sample.

Where there is more than one storage tank for a product, the tank number in
which the product was decanted should be indicated/ identified on the tank
lorry sample container.

15

Notes: (i) In case the Tank Lorry driver refuses to sign, the Tank Lorry should
not be decanted. Dealer to contact supply location/ sales officer.

(ii) In case the dealer notices any unusual deviation by the tank lorry
(Time or Route) he will inform the supply location/ sales officer and
decant the tank lorry thereafter on getting further instructions.

2.4

DRAWAL OF SAMPLES BY OIL COMPANYS REPRESENTATIVE

Random sampling at ROs by company officials will take place over and above
the MDG samples. Random sampling will be done by the Sales Officer,
Inspecting Teams, Senior Level Officers and Mobile Labs.

The random

sampling will cover at least 5% of the total retail outlet network every month.

In addition, samples should also be drawn in case of density failure, filter paper
test failure, stock variation beyond permissible limit, as well as during special
drives or during specific complaint against the retail outlet.

These samples

should be sealed and labeled as per Annexure 4.

The procedure to be followed is as under:

2.4.1 MS - Oil company representative should collect six samples of 1 litre

each from each tank of the RO. Two samples are to be retained by the
dealer, two samples at division/territory/regional office and two samples
sent to the oil industry marketing laboratory for testing.

It would be the responsibility of the oil company representative drawing

the sample to take / arrange action to ensure that the following samples
are collected and sent to the oil industry marketing laboratory.
Wherever the laboratory is not equipped for the testing of Octane
number, then the second sample of each of the following should be sent
to the lab where CFR engine is available for Octane number test.

(i)

Two (2x1 litre) samples of each tank drawn by him from the RO

(ii)

Two (2x1 litre) tank lorry samples of last two loads which were
drawn and retained by the dealer for each tank (this should
16

pertain to the tank which is connected to the dispensing unit

from which the samples were taken by oil co. representative).

(iii)

Two (2x1 litre) reference samples of the supply location -

these

samples should be those which are from the same tank from
which the supply was made to the RO dealer and tank reference
of which was mentioned on the delivery documents covering the
supply to the retail outlets. If the RO has more than one tank for
MS and the last receipt of each of these tanks were on different
days, corresponding reference sample of the supply location for
these supplies would have to be sent for testing.

2.4.2 HSD - Oil company representative should collect three samples of 1 litre
each from each tank of the ROs. One sample is to be retained by the
dealer, one sample at division /territory/ regional office and one sample
sent to the oil industry marketing laboratory for testing

It would be the responsibility of the oil company representative drawing

the sample to ensure that the following samples are collected and sent
to the oil industry marketing laboratory for clinical tests.

(i)

One (1x1 litre) sample of each tank drawn by him from the RO

(ii)

One (1x1 litre) tank lorry sample of last two loads which was
drawn and retained by the dealer for each tank (this should
pertain to the tank which is connected to the dispensing unit
from which the samples were taken by oil co. representative).

(iii)

One (1x1 litre) reference sample of the supply location -

this

sample should be the one which is from the same tank from
which the supply was made to the RO dealer and tank reference
of which was mentioned on the delivery documents covering the
supply to the retail outlets. If the RO has more than one tank for
HSD and the last receipt of each of these tanks were on different
days, corresponding reference sample of the supply location for
these supplies would have to be sent for testing.

17

2.4.3. DRAWAL OF SAMPLES BY JOINT INDUSTRY TEAMS

Joint industry team members can collect samples from retail outlets
irrespective of results of indicative/suggestive tests like density test,
stock variation, filter paper etc during joint inspections. These samples
should be sealed and labeled as per Annexure 4 and jointly signed by
the dealer/ his representative and the members of the joint industry
team who are drawing the samples.

The procedure for drawal and dispatch of samples for testing would be
the same as given in para (2.4) above.

It would be the responsibility of the concerned oil company member of

the joint industry team or the senior officer of the team in the absence
of any member from the concerned oil company to ensure that the
samples are collected and sent to the oil industry marketing laboratory.
In case of MS samples, wherever the laboratory is not equipped with the
testing of octane number, then the second sample should be sent to the
lab where CFR engine is available for octane number test.

2.4.4. DRAWAL OF SAMPLES BY MOBILE LABORATORIES

1.

Mobile laboratories will draw nozzle samples of MS and HSD from all the
tanks at the retail outlets and will carry out clinical tests as applicable
for mobile laboratories on these samples.

If the sample passes no

further action will be taken.

2.

If any of the samples fails, the Mobile lab will follow the procedure for
drawal and dispatch of samples for testing as explained in para (2.4)
above. However, while the 1st set of sample will be retained with the
dealer and the 2nd set sent to the concerned oil company for retention,
the third set of sample will also be sent to the concerned oil company
for testing and not directly to the lab.

The mobile lab will hand over

these samples to the concerned oil company representative preferably

within the next 5 days.

He should also inform the concerned supply

18

location immediately on telephone, so that depot sample can be

retained.

Notes:
(1)

In case the samples at supply location are not available and the same
has already been sent for lab testing at an earlier instance, the test
report of the relevant sample available at the laboratory be utilized. In
case such reports are being hoisted on the web site or available at the
supply location then these reports be utilized for comparing the test
results of the samples in question.

(2)

All the above samples should reach the laboratories for testing
preferably within 10 days of the collection of the samples.

(3)

In case it is found during the inspection that the tank lorry retention
samples are not available at the retail outlet and has been sent for
testing earlier, the test results of the sample drawn by the inspecting
officials should be compared with the results which have been obtained
by the laboratory for the tank lorry retention sample sent earlier. For
this purpose, a specific noting should be made by the inspecting officer
so that this aspect is taken care of by the laboratory. Particulars of the
date of dispatch of the tank lorry retention samples and the other
details of the tank lorry retention samples should be forwarded to the
laboratory by the concerned oil company, (by the member or the senior
officer of the joint industry team in the absence of member from the
concerned oil company).

(4)

Payment for samples collected be made by the inspecting officer to the

dealer.

2.5

GENERAL PROCEDURE FOR DRAWAL OF SAMPLES:

A)

All samples should preferably be suitably coded before sending to lab for
testing preferably within 10 days of drawal.

B)

Whenever tank lorry samples are not retained / made available by the
dealer to the inspecting officials at the time of drawal of sample from the
19

RO this fact be recorded. The tank lorry sample produced at a later stage
would not be considered for testing. In such case, the result of the RO
sample will be compared with supply point sample and action if any will
be initiated against the dealer only.

C)

If all the sample passes the test, dealer should be intimated in writing
and all pertinent retention samples at ROs, Divisions/Territory/Regions,
dispatch locations and transporter can be disposed off. All communication
irrespective of whether sample passes or fails should be communicated to
the dealer preferably within 30 days of drawal of sample.

D)

The Laboratory will test the RO sample, the last Tank Lorry Retention
sample (TL1) and the correspondence supply location sample (SL1) and
compare the reproducibility/ permissible limits of the test values. In case
the RO sample fails and TL1 passes then TL2 and SL2 samples will also
be tested. Action against the dealer/transporter would be taken based on
the above test results.

E) In case of sample failure and in the event of request from dealer for
testing his retained sample, his sample along with the counter sample
retained with the OMC are to be tested at any PSU laboratory of his
choice in the same /nearby State or FTL- NOIDA as per guidelines and in
the presence of field officer and RO dealer after due verification of the
samples. The decision of the competent authority which would be based
on the test results of all the 3 samples would be decisive and binding on
all. The expenditure incurred for testing of retention samples to be borne
by the dealer.
F)

In all situations including the situation explained above, the tests have to
be conducted for the supply location sample (if within retention period),
RO retention sample and tank lorry sample (if made available by the
dealer at the time of inspection) before a decision is taken.

G)

Similarly in case of a request from the Transporter (not in case of a

dealer-cum-transporter) for testing his retained sample, the same will be
complied with by the oil company. The sample of the transporter retained
by the transporter will be tested as per the guidelines, preferably in
20

presence of the Field Officer, dealer, transporter / representative of the

Oil Co. after due verification of the samples.
The test result of this sample will be compared with the corresponding
Tank lorry retention sample which was tested earlier and the supply
location sample. The decision of the oil company, would be based on the
test results of these 3 samples (i.e TT retention sample with the dealer,
SL sample and the TT retention sample with the transporter) would be
decisive and binding on all. All these samples should be tested in the
same lab, and if possible by the same person to ensure repeatability and
reproducibility. The expenditure incurred for such testing should be
recovered from the transporter.
H)

In case of density/filter paper test failure, clinical test failure by mobile

lab, sales and supply of all products will be suspended by the OMC officer
after informing the concerned Territory/Divisional/Regional Manager and
samples will be drawn and sent for testing on priority basis. Laid down
procedure will be followed and appropriate action will be taken based on
the outcome of the test results.

I)

The purpose of mentioning time frame for various activities e.g. sending
samples to lab preferably within 10 days etc. is to streamline the system
and is no way related to quality/result of the product.

J)

Whenever any one agency has detected any irregularity on account of

quality and initiated investigation, parallel investigation by way of drawl
of samples will not be carried out during pendency of the proceedings.

2.6

SAMPLE CONTAINERS TO BE USED

A)

All samples need to be collected in one litre Aluminium containers with

wooden boxes as per the existing norms.

B)

While

procurement

and

positioning

of

adequate

no.

of

sample

containers, random numbered plastic seals, stainless steel ISI marked

sealing wires and sealing pliers (free of cost) at retail outlets is the
responsibility of the concerned oil company and it is the responsibility of

21

the Oil Co. representative / mobile laboratory to replace empty standard

container in lieu of containers collected from the dealers, it would be the
responsibility of the dealers to request the Corporation for the aforesaid
materials in time.

NOTE:

A corpus of sample containers should be maintained at the supply

location for use by the company owned tank lorry when it supplies the
product to the RO.

2.7

SEALING OF SAMPLING CONTAINERS

Sealing of the sample containers may be done with ISI marked stainless steel
wires.

Both the Aluminium containers and the wooden box should be properly sealed.
Random numbered plastic seals, sealing wire, pliers are to be used for sealing
of all sample containers.

The above material is to be supplied by the

respective oil companies free of cost. Oil companies can also put additional
seals / holograms.

2.8

SAMPLE TAGS

Sample tags, as per specimen in Annexure 3 are to be printed and supplied to

the retail outlets in sufficient nos. by respective oil companies free of cost.

2.9

RETENTION OF SAMPLES

2.9.1 At Supply Locations

Supply locations are required to keep the supply location retention

sample for a minimum period of 30 days.

Whenever the reference

samples are required from the supply location, two samples of MS would
be sent to the Oil Industry Marketing Laboratory. Wherever the
laboratory is not equipped with the facility for testing of Octane number,
then the second sample should be sent to the nearest Refinery or facility
where CFR engine is available for Octane number test only. In case of
HSD, one sample would be forwarded to the Oil Industry lab for testing.
22

2.9.2 At Retail Outlets:

1.

Dealer shall always retain the corresponding tank lorry samples

of last two loads of the respective underground tanks. Wherever
there is more than one tank for a product, the tank number in
which the product was decanted should be indicated on the tank
lorry retention sample container.

2.

The

dealer,

from

whom

the

sample

is

drawn

by

the

representative of the Oil Company for testing should retain his

sample till such time the testing and subsequent procedures are
completed.

2.9.3. At Divisional / Territory / Regional Office of the Oil Company

The Divisional Office should retain its sample (RO sample) till such time
testing and subsequent procedures are completed.

2.9.4. Transporters

The transporter, in case they opt for keeping the tank lorry retention
sample pertaining to any delivery the same should be retained till such
time the testing and subsequent procedures are completed.

2.10

SAMPLE TESTING AND RESULTS:

The test to be carried out for MS/HSD samples drawn from retail outlets are
given in Annexure 5.

All samples should reach the lab preferably within 10 days from the date of
drawl and lab should test the samples preferably within the next 15 days.
Results are to be communicated to the dealer by the concerned Oil Company
preferably within the next 5 days from receipt of test reports.

23

Generally, the above procedure should be strictly followed and the time frame
as stipulated above to be adhered to. However, during special drives, in view of
the large number of samples, the sample should reach preferably within 15
days after drawl and the testing should be completed preferably within 30 days
of the receipt of the samples.

All test reports are to be signed by authorized officers only.

Interpretation of results- Samples are deemed to have failed if the test results
of sample under scrutiny and the reference sample do not fall under the
reproducibility/ permissible limit of test method.

The tests to be conducted on MS / HSD (as given in Annexure 5) will conform

to the latest IS: 2796 specifications of Motor Spirit and IS: 1460 specifications
of High Speed Diesel, and amendments thereupon from time to time.

The tests will be carried out as per standard test methods as given in the
Bureau of Indian Standard Specification, IS: 1448:P or equivalent methods of
tests for petroleum products and Standards applicable at the time of
inspection.

The test results on the sample taken from the Retail Outlet and Tank Lorry
should be within the reproducibility limits of the test method when compared to
the reference sample at dispatching location.

Reference for density would, however, be that recorded in the dispatch

document upto decanting of Tank Lorry at the Retail Outlet.

Thereafter, for

samples collected from Retail Outlet, reference density would be density of the
composite product in Storage tank, recorded after receipt of product after
dispensing at least 50 liters of product through the pump.

24

CHAPTER - 3

HANDLING OF MS/HSD/SKO AT COMPANYS STORAGE POINTS AND DUTIES

OF OIL COMPANIES

It will be the responsibility of Oil Companies to supply product of correct quality &
quantity and provide excellent customer service.

3.1

QUALITY / QUANTITY CHECKS

a)

All storage points shall carry out quality control checks as laid down in
the Industry Quality Control Manual (IQCM) at every stage of product
handling to ensure that the product released meets the standard
specifications.

b)

Water dips shall be taken to check presence of water in storage tanks

and remedial measures be taken wherever necessary.

c)

Quality Control checks shall be recorded in the standard quality control

formats in line with the IQCM.

d)

SKO will be released only after conducting visual, appearance, colour,

density & flash point checks as per norms given in the IQCM.

e)

Samples shall be drawn and retained for minimum 30 days

from tank

lorries/tank wagon filling points everyday in the morning and at the

time of switch over of tanks in line with the Quality Control Manual.
This includes Refinery Dispatch Units supplying directly to ROs.

Each

such sample would be given a particular number / batch number which

would also be mentioned in the delivery documents.

f)

It is the responsibility of the oil companies to market ethanol to be

blended correctly as per the Govt. guidelines. It is also the responsibility
of the dealer to ensure that the right quality of ethanol blended product
is sold in the market.

25

The locations undertaking blending of Ethanol in MS shall blend the

Ethanol as per the prescribed limits. The presence of Ethanol shall be
checked by the locations before release of the product.

g)

All locations will ensure suitable Blue Colour Dyeing of Kerosene as per
the prescribed dosage for SKO to be released under PDS.

h)

Visual appearance, colour, Density from the tank lorry fill point shall be
checked, every two hours and whenever there is a switch over of tanks,
records should be maintained. Density at 15 Degree C so observed shall
be recorded in the delivery challan along with the Tank No. for all the
tank lorries filled.

i)

Only tank lorries having a valid Calibration Certification and Explosives

License from the Weights & Measures Deptt. and PESO respectively
should be accepted for filling.

j)

Tank lorries to be checked for fitness as per (i) above, leaks to be

checked after filling and before dispatch of tank lorries.

Mixed loads

shall not be permitted in tank lorries having common manifold. After the
tank lorries are filled, visual checks to be carried out as per IQCM.

k)

In the event of any malpractices being detected in tank lorries,

appropriate action shall be taken in line with the Industry Transport
Discipline Guidelines.

l)

Transportation of PDS SKO should be in separate Tank Lorry and those

used for transporting MS or HSD should not be used for transporting
PDS SKO. The Tank Lorries used for transporting PDS SKO should be
painted in Blue colour so that they are easily identifiable.

26

3.2

SEALING / GPS

The tank lorries shall be sealed / locked properly as per Industry practice on
Mechanical / Electronic sealing / locking of tank lorries.

Seal / Security lock

numbers should be recorded in the Invoices.

The supply location will be responsible for the smooth operation of GPS and no
filling of the Tank Lorry would be undertaken if the VTS is not installed or it is
installed but found not to be working in the prescribed manner.

The deviation reports will be generated by the system and automatic alerts will
be sent to the officers monitoring VTS.

The deviation reports/alerts will be

viewed by officers at the supply locations as well as by the dealer.

The

deviation reports/alerts will cover time and route deviations by tank lorries and
these have to be immediately investigated.
Dealers/ their representatives will be allowed to witness the respective Tank
Lorry filing at the supply location in case of ex-MI supplies. The dealers may
accompany the tank lorry to the RO. The RO also should monitor the
movement of Tank lorry which is carrying supplies meant for it.

3.3

TRAINING OF DEALER / DEALERS STAFF

Oil companies should endeavour to continuously make efforts at training RO

dealers and their staff on various aspects of RO Operation, including

safe

handling of petroleum products, customer service and courteous behaviour.

27

CHAPTER 4

MAINTENANCE OF COMPANY EQUIPMENTS AT RETAIL OUTLETS

4.1

DISPENSING

UNITS

STANDARDISATION

OF

FITTERS

CHARGEMANS MAINTENANCE REPORT FORMAT

Maintenance Job Report Performa, to be printed in Hindi/English, for the

Dispensing Units and other equipments provided at the Retail Outlets by the Oil
Company is attached as Annexure 6.

4.2

MAINTENANCE OF PUMPS AND OTHER EQUIPMENTS

a)

Equipments belonging to the Oil Company

While, the Oil Company shall arrange to attend breakdown maintenance

of the Dispensing Pumps and other equipments belonging to the Oil
Company, it shall be the responsibility of the dealer to ensure that these
equipments are handled in proper manner and day to day upkeep are
carried out in accordance with the maintenance manual / instructions.
In case of any breakdown, the same shall promptly be informed by the
dealer to the Oil Company.

b)

Equipments belonging to Dealer

The dealer shall maintain all equipments belonging to him in good

working condition at all times in accordance with the maintenance
manual / instructions.

28

4.3

RECTIFICATION OF DEFECTS IN DISPENSING UNITS / PIPELINE /

TANKS

a)

Dispensing Units

Calibration

If the pump is delivering short / excess, the Companys Maintenance

Representative / Dealer should immediately arrange for recalibration
with the help of the Weights & Measures Inspector.

In case the Weights & Measures Department seal is found to be broken,

the

Oil

Companys

Maintenance

Representative

shall

inform

the

concerned Company Official for further action and incorporate the same
in the Pump maintenance Report which should be duly signed by the
dealer as well.

b)

Pipeline

In case of detection of minor leaks in the pipeline, the Companys

Maintenance Representative should arrange to rectify the defect/leaks.

In case of major leaks, he should inform his headquarter for getting

necessary instructions. In the meantime, he should advise the dealer to
suspend the sales, note down the totaliser reading and underground
tanks dip and record it on the job report and obtain Dealers signature
on his job report.

c)

Tanks
In case of seepage of water into the tank, Companys Maintenance
Representative should check all tank openings and should arrange to
take corrective action by replacing necessary packings, gaskets and
replace the missing caps, if any.
In case of suspected loss of product due to leakage in tank, the dealer
should report the same to the Controlling Office of the Company.
29

In case of Ethanol blended Motor Spirit, check the Ethanol content after
removal of the water from the tank before its release. In case the
Ethanol content is not in the desired range then stop sales and inform
controlling office. Test method for Ethanol is as per Annexure 7

4.4

DETECTION OF PRESENCE OF WATER IN THE UNDERGROUND TANK

The Companys Maintenance Representative shall check the underground tanks

for presence of water by carrying out water dip check on every visit to each
retail outlet and in case water is detected, steps shall be taken to remove the
water.

30

CHAPTER - 5

TYPE OF IRREGULARITIES AT RETAIL OUTLETS (MS / HSD) AND SKO / LDO

DEALERSHIPS

5.1

MS/HSD

5.1.1 ADULTERATION OF PRODUCT

Definition :

Adulteration means the introduction of any foreign substance into

Motor Spirit / High Speed Diesel illegally or unauthorizedly with the
result that the product does not conform to the requirements of Bureau
of Indian Standards specification number IS:2796 and IS:1460 for
Motor Spirit and High Speed Diesel respectively and amendments
thereon, and / or

If the observations on the sample under scrutiny and the reference

sample do no fall within reproducibility / permissible limits of the test
method for which the samples are examined, and / or

Any other requirement for the purpose to identify adulteration, issued

by the Competent Authority from time to time.

Handling of adulterated product

In case of proven adulteration, the product (MS/HSD) will be sent to the

nearest refinery as per the directive of MOP & NGs letter (P21027/29/2001-Dist dated 21-12-2002).

In case of proven adulteration at the RO, the entire expenses towards

transportation, pumping of product, tank cleaning, incidental charges,
local levies, etc. will be recovered from the dealer. The dealer will be
paid an amount equivalent to the cost of Furnace Oil and for the actual
quantity received at the Refinery end.
31

In case of proven adulteration by the transport contractor / crew, in

addition to the action as per the TDG, all the expenses would be
recovered from the transport contractor. The loss on account of product
down gradation and transit loss, if any would also be recovered from the
transport contractor. The dealer will receive full value of the product.

5.1.2 SHORT DELIVERY OF PRODUCTS

a)

With Weights & Measures Department Seals intact

Sales through the concerned dispensing unit to be suspended

forthwith and recalibration and re-stamping to be done before
recommencement of sales.

b)

With Weights & Measures department Seals tampered

W&M department seals are put on Metering unit and Totaliser

unit with the help of a sealing wire and a lead seal which is
embossed by W&M inspector.

The seal would be deemed tampered in the following cases also:

1. Seal itself is missing

2. Different seal has been put other than embossed by W&M
inspector
3. Sealing wire is broken and not in one piece.

In

addition

other situations which

can lead to manipulation of

delivery/quantity / totaliser may also be treated as tampering.

Penal action to be taken even if the delivery is found to be correct or
excess.

In case of this irregularity sales from the concerned dispensing unit to

be suspended, DU sealed. Samples to be drawn of all the products and
sent to lab for testing.
32

5.1.3 TOTALISER SEALS FOUND TAMPERED WITH

Totaliser seals will also be construed as tampered if it allows

manipulation of Totaliser reading; deliberately making the totaliser non
functional or not reporting to the OMC if totaliser is not working.

In case of this irregularity sales from the concerned dispensing unit to

be suspended & DU sealed. Samples to be drawn of all the products and
send to lab for testing.

5.1.4 ADDITIONAL / UNAUTHORISED FITTINGS / GEARS FOUND IN

DISPENSING UNITS /TAMPERING WITH DISPENSING UNIT

Any mechanism / fittings / gear found fitted in the dispensing unit with
the intention of manipulating the delivery.

Removal, replacement / manipulation of any part of the Dispensing Unit

including microprocessor chip / electronic parts/ OEM software will be
deemed as tampering of the dispensing unit.

In case of this irregularity sales from the concerned dispensing unit to

be suspended, DU sealed. Samples to be drawn of all the products and
send to lab for testing.

5.1.5 UNAUTHORISED STORAGE FACILITIES/ INTER CONNECTION

A storage facility within the licensed area of the retail outlet not
approved by the Company and / or a storage facility outside the
licensed premises with interconnection in to the retail outlet premises.
Interconnection means unauthorized connection between tanks within
the licensed premises.

33

5.1.6 UNAUTHORISED PURCHASES / SALES OF MS/ HSD OR ANY

OTHER PRODUCT WHICH COULD BE USED AS A SUBSTITUTE FOR
THESE PRODUCTS

Dealers should purchase only those petroleum products authorized by

the principle Oil Company for sale from the Retail Outlet. Purchase of
the products from sources other than those authorized by the oil
company would be treated as unauthorized purchase.

Any sales of MS / HSD other than through the dispensing units of that
RO would be treated as unauthorized sales.

5.1.7 TANK

LORRY

CARRYING

UNAUTHORISED

PRODUCT

FOUND

DECANTING PRODUCT INTO THE RETAIL OUTLET TANKS

Tank lorry carrying unauthorized product found decanting product into

the Retail Outlet tank.

5.1.8 REFUSAL BY THE DEALER TO ALLOW DRAWAL OF SAMPLE OR

CARRY OUT INSPECTION.

Refusal / obstruction / creating circumstances disabling the process of

drawl of samples / carrying out inspections.

5.1.9 NON-AVAILABILITY OF REFERENCE DENSITY AT THE TIME OF

INSPECTION

The dealer is required to check and record morning density on daily

basis. This has to be carried out latest by 10 AM every day. Similarly
whenever fresh loads are received the dealer is expected to check and
record density of composite product in the RO tank after decantation.
Therefore non availability of the following density at the time of
inspection would be treated as non-availability of reference density:

34

(a)

If inspection is carried out before 10 AM, density as recorded of

the previous morning or density of composite product if load was
received the previous day.

(b)

If inspection is carried out after 10 AM, but before receipt of any

load on that date, the density as recorded on the morning of that
day.

(c)

If inspection is carried out after 10 AM, but after receipt of any

load on that date, the density as recorded of the composite
product after unloading.

In case of non-availability of reference density at the time of inspection,

sales and supplies of all the products to be suspended immediately.
Samples of all products to be drawn and sent to lab for testing. If the
sample passes then penal action specified for this irregularity to be
taken. If sample fails, penal action in line with the irregularity of
adulteration to be taken.

5.1.10 SELLING OF NORMAL MS/HSD AS BRANDED FUEL

Intentional sales of Normal MS/HSD as Branded fuel.

5.1.11 STOCK VARIATION OF MS/HSD (Beyond Permissible limits) FUEL

Stock reconciliation should be carried out and variation, if any,

established after taking into account the normal operational variation of
4 % of tank stock and after considering the following factors :

i)

Evaporation/handling losses in MS as follows:

0.75% on quantity sold upto an annual average of 600 KLs

0.60% on additional quantity beyond an annual average of 600

KLs.

35

ii)

Handling losses in HSD as follows :

0.25% on quantity sold upto an annual average of 600 KLs

0.20% on additional quantity beyond an annual average of 600

KLs

iii)

Shrinkage losses and Temperature variation losses on MS and

HSD to be taken into account (only in those cases/locations
where and when the Shrinkage Allowance / TVA is applicable)
(Annexure 8, 9, 10)

In case of positive stock variation beyond permissible limits, samples

will be drawn and sent to laboratory for testing. Sales and supplies of all
products to be suspended immediately. Study to be carried out to
identify the reasons for stock variation. If the sample passes but some
other irregularity like unauthorized purchase etc. is established action to
be taken accordingly. However, if the sample fails, action in line with
that of adulteration will be initiated.

In case of Negative stock variation and in the absence of any other

irregularity the permissible limit be considered up to 4% as specified
above and samples will be drawn and sent for testing. In case the
negative stock variation is beyond permissible limits sales & supplies to
the

retail

outlet

will

continue

during

the

investigation

period.

Explanation of the dealer to be called. Supply to be immediately

suspended in case explanation of the dealer not found satisfactory.

5.1.12 NON-MAINTENANCE OF SPECIFIED RECORDS

Dealers are required to maintain various records including the following.

Non-maintenance of below mentioned records will be treated as an
irregularity.
i.

Daily sales register of OMC & Density register for current and
previous financial years.

36

ii.

Pump maintenance records for current and previous financial

years.

iii.

Inspection record for previous five years

iv.

Purchase Invoices & sales bills for the current and previous
financial years

v.

Selling license, Explosives License and such other licenses which

are needed for continued operation of the RO

vi.

Any other record as specified by OMCs in writing.

5.1.13 OVERCHARGING

IN

AUTHORISED

SELLING

PRICES

OF

MS/HSD/CNG/AUTO LPG.

Overcharging in authorized selling prices of MS/HSD/CNG/AUTO LPG.

5.1.14 NON PROVISION OF FACILITIES Like Air with caliberated Air Gauge,
Clean Toilet, Telephone, First-Aid BOX with medicines not beyond expiry
dates at RO premises.

5.1.15 NON DISPLAY OF AUTHORISED RETAIL SELLING PRICES OF MS

/ HSD / CNG / AUTO LPG

Dealers are required to exhibit at the retail outlet the retail selling prices
of petroleum products sold from the RO.

5.1.16 DEALER OPERATING THE AUTOMATED RO IN MANUAL MODE

WITHOUT AUTHORIZATION.

Where automation has been completed at a Retail outlet and if any

dispensing unit there has been found to be operating in manual mode
without proper authorization from the competent authority it will be
treated under this irregularity.

37

5.1.17MISCELLANEOUS
Non display of density, opening stock of the day, sticker ensuring Zero
before delivery on dispensing unit, name of product on each nozzle of
MPD, contact details of authorized persons to be contacted in case of
Complaint / Grievance / Emergency.

Non maintenance of complaint book or not providing the same

when demanded by the customer.

Poor housekeeping.

Driveway Salesmen at the ROs not in uniform/wearing badges.

NOTES:

i)

Dealer is required to retain Tank Lorry samples of last two loads as per
3-tier sampling procedure. In case such Tank Lorry retention samples
are found not available at the time of inspection, the dealer has to be
instructed to follow the procedure as the same practice is suggested to
safeguard the interests of innocent dealers.

ii)

While drawing samples from a MS tank through the nozzle of the

dispensing unit connected to that tank, it should be ensured that the MS
sample is drawn only through the nozzle delivering non-2T premixed
MS. In case, all nozzles connected to a MS tank are delivering only 2Tpremixed MS, then in such case necessary precaution is to be taken to
ensure that the MS sample drawn is free from 2T Oil.

38

CHAPTER - 6

DUTIES

OF

SKO

DEALERS

KEROSENE

SUPPLIES

UNDER

PUBLIC

DISTRIBUTION SYSTEM
Oil Industry provides SKO under the Public Distribution System. SKO dealers also
known as the wholesale dealers are appointed by the Oil Companies after following the
due Dealer Selection Process. The Retailers (Ration shops) are appointed by the
respective State Govts. The Oil Company provides PDS Kerosene ex-their Depots /
Installations and the dealers uplift the product. In other words, the responsibility of
transporting the product from the Oil Company Depot onwards lies with the dealers
under the guidance / supervision of the respective State Govts. In few cases like Hilly
areas etc. the system of delivered supply of SKO also exist.
1.

SKO dealers shall sell, distribute or supply blue dyed Kerosene to persons for
whom the supplies are meant for.

2.

SKO dealers having stocks of Kerosene, shall not, unless otherwise directed by
the Govt. or Oil Company, refuse to sell, distribute or supply Kerosene to any
consumer on any working day during working hours.

3.

SKO dealers shall not keep their business premises, including the place of
storage, closed during working hours on any working day without the prior
written permission of the Oil Company.

4.

SKO dealer shall not sell, distribute or supply Kerosene at a higher price than
that fixed by the Govt. or the Oil Company.

5.

Every dealer shall take all reasonable steps to ensure that adequate stocks of
Kerosene are available at the business premises including the place of storage
at all times.

6.

Every dealer shall prominently display at the place of business, including the
place of storage, at a conspicuous place, a stock-cum-price board.

7.

Every dealer shall maintain a proper account of daily purchase, sale and stock
of Kerosene at the business premises/Tank Lorry every day.

Oil Company officials shall inspect these dealerships and if any irregularity is noticed,
action is taken against the erring dealers as detailed under para 9.10 of this
document.
39

CHAPTER - 7

MOBILE LABORATORY

7.1

INTRODUCTION

The objective of deploying Mobile Labs is to assess the quality of MS / HSD and
Lube samples at Retail outlets by surprise checks.

7.2

DEPLOYMENT

The programme for the deployment of the Mobile Labs will be drawn by the
respective SLC who will also coordinate with other Oil Companies to nominate
Officers for joint industry team inspections with Mobile Labs.

The Mobile Lab shall operate on behalf of the Oil Industry and hence will carry
the logo of all the three Oil Companies.

Individual Oil Companies can also

operate Mobile Labs for inspection of their retail outlets.

7.3

INSPECTION AT RETAIL OUTLETS

a)

MS/HSD samples are to be drawn from the dispensing units in the

premises of the retail outlets.

7.3.1 TERMS OF PAYMENT

Payment to be made to Retail Outlets for the quantity of samples

consumed for testing. In case sample fails, the cost of samples retained
also be paid to Retail Outlets. Cash Receipts should be preserved.

7.4

TESTING OF SAMPLES

a)

MS / HSD samples

The samples shall be subjected to clinical tests including density as

mentioned in the MS/HSD Control Order. Tests to be carried out are :

40

MS Appearance, colour (*Visual), Density at 15 C, Distillation,

HSD

Appearance, Colour (Visual), Density at 15 C, Distillation, KV at 40 C.__

NOTE

i)

Clinical tests are to be conducted irrespective of the Density test results.

In case the product fails either in Density or any parameter of clinical
tests, action to be taken by the Oil Company for

established

adulteration.

ii)

Sales and supplies are to be suspended by Mobile Lab in the event of

failure of sample in Lab test.

iii)

7.5

SLC and concerned Oil Company to be advised.

SAMPLING PROCEDURE

The procedure for drawal of samples and the container to be used for sampling
would be as enumerated under Chapter 2 (Chapter on 3-tier sampling
procedure)

SAMPLE TAG - All the sample particulars shall be recorded as per specimen
Annexure 11.

7.6

CLINICAL TESTS
TEST METHOD
IS : 1448

Motor Spirit : Tests

1)

Appearance

Visual

2)

Colour

Visual

3)

Density @ 15 Degree C

P 16

4)

Distillation

P 18

IBP Degree C
Recovery upto 70

Degree C % V
41

Recovery upto 100 Degree C % V

Recovery upto 150 Degree C % V
Final Boiling Point Degree C
Residue, % V

High Speed Diesel

1)

Appearance

Visual

2)

Colour

Visual

3)

Density @ 15 Degree C

P-16

4)

Kinematic Viscosity cSt at 40 Degree C

P-25

5)

Distillation, recovery up to 360 Deg C

P-18

The above mentioned tests will be carried out as per standard Test
methods as given in the Bureau of Indian Standard Specification, IS:
1448 : P or equivalent methods for respective tests and limits apply
as per the relevant product specification.

If the product meets specification in respect of above tests, all the

balance samples collected shall be returned to the Retail outlet. In case
the product fails to meet specification, the SLC and the concerned Oil
Company should be immediately informed.

They should arrange for

collection and testing of related reference samples which would be in

line with provisions contained in Chapter 2.

7.6.1 CERTIFICATION

a.

The Test Reports for MS/HSD shall be made as per Annexure 12

/12(a) and 13/13(a) respectively.

Five copies of the Test Reports

shall be made which will be distributed as follows :

i)

To the Retail Outlet

ii)

To the concerned Divisional / Territory / Regional Office of the

OMCs.

iii)

State Level Co-ordinator

iv)

To the concerned Technical / Quality Control Department of the

OMCs
42

v)

b.

To Mobile Laboratory.

If the sample fails, the meter reading of all the dispensing units and the
dip readings of the Tank(s) of the concerned product shall be recorded
in the Report (Annexure 12 or 13 as applicable) and the dealer shall
be advised to suspend the sales of the concerned product.

c.

The above instruction shall be recorded under the Remark column of

the Test Report and the Dealers signature with seal shall be obtained
on all copies of the Test Report.

d.

The Mobile Lab Officer shall inform the State Level Coordinator
immediately regarding failure of sample and action taken.

7.6.2 i)

No corrections shall be made either in the Record Book or the

Laboratory Test Report on entry of the Test results already made.

ii)

All the Test Reports should be serially numbered.

43

CHAPTER - 8

8.

Action to be taken by OMC under the Marketing Discipline Guidelines

8.1

All irregularities (mentioned in chapter 5) are classified into three categories,

i.e. Critical, Major and Minor.

8.2

Critical Irregularities: The following irregularities are classified as critical

irregularities:

i.

Adulteration of MS/HSD (5.1.1)

ii.

Seals

of

the

metering

unit

found

tampered

in

the

dispensing

pumps.{5.1.2 (b)}
iii.

Totalizer seal of dispensing unit tampered or deliberately making the

totalizer non functional or not reporting to the company if totalizer is not
working. (5.1.3 read with 5.1.2)

iv.

Additional/Unauthorized

fittings

and

gears

inside

the

dispensing

units/tampering with dispensing units. (5.1.4)

v.

Unauthorized storage facilities (5.1.5)

vi.

Unauthorized purchase / sales of products. (5.1.6)

vii.

Tank lorry carrying unauthorized product found under decantation at the

RO (5.1.7)

Action:

Termination at the FIRST instance will be imposed for the above

irregularities.

8.3

Major Irregularities:

The following irregularities are classified as major

irregularities:

i.

Refusal by the dealer to allow drawl of samples /carry out inspections.

(5.1.8)

ii.

Non availability of reference density at the time of inspection. (5.1.9)

iii.

Selling of normal MS/HSD as branded fuels.(5.1.10)

iv.

Stock variation beyond permissible limits but sample passing quality

tests. ((5.1.11)

v.

Non maintenance of records since last inspection. (5.1.12)

vi.

Overcharging of MS/HSD/CNG/ Auto LPG(5.1.13)

44

vii.

Dealer

operating

the

automated

RO

in

manual

mode

without

authorization. (5.1.16)

Action:

Except in case of (iii) Suspension of sales and supplies for 15 days

for the first irregularity, 30 days for the second irregularity, and a
third offence would lead to termination of the dealership.

Action in case of (iii) above would be as under:-

In the first instance OMC would impose a penalty of recovery of

differential price since last inspection. Termination will be the action
in case of 2nd instance.

8.4

Minor Irregularities: The following irregularities are classified as minor

irregularities:

i.

Short delivery with Weights & Measures Departments seals intact where
the dealer has not informed the OMC of this defect. {5.1.2(a)}

ii.

Non maintenance of specified records where records from last inspection

are maintained but prior records are not available.(5.1.12)

iii.

Non provision of facilities like air, clean Toilet, Telephone and first aid
box.(5.1.14)

iv.

Miscellaneous.

a)

Non display of authorized Retail Selling prices of MS /

HSD / CNG / AUTO LPG. (5.1.15)

b)

Non display of density, opening stock of the day, sticker

ensuring Zero before delivery on dispensing unit, name of
product on each nozzle of MPD, contact details of
authorized persons to be contacted in case of Complaint /
Grievance / Emergency. (5.1.17)

c)

Non maintenance of complaint book or not providing the

same when demanded by the customer. (5.1.17)

d)

Poor housekeeping.(5.1.17)

e)

Driveway Salesmen at the ROs not in uniform/wearing

badges. (5.1.17)
45

(One or more irregularity under the above category a, b, c, d or e will be

considered as one irregularity only for the purpose of taking action).

Action:

(except in case of (i) above):-Warning-cum-guidance letter in the

first instance, Rs. 10000/- per irregularity on second instance and
Rs. 25000/- per irregularity on third instance onwards.

Action in case of (i) above would be as under:-

First instance: warning letter to be issued

Second instance within one year of 1st instance: Rs.10000/- per nozzle found
delivering short.
Third and subsequent instances within one year of 1st instance: Rs. 25000/- per
nozzle found delivering short.

8.5.1 The above are general guidelines and the actions prescribed in MDG 2012 are
minimum. The competent Authority of the concerned Oil Company can however
take appropriate higher action against the erring dealer, if deemed necessary
including termination in the first or any instance in line with the provisions of
the Agreement.

8.5.2 All cases of irregularities needs to be established before any action is taken
against a dealer.

8.5.3 In case, two or more irregularities are detected at the same time at the
same RO,

a.

Each of the irregularities should be accounted as an instance against the

respective class of irregularity.

b.

Suitable action will be taken for that specific irregularity and also for
that specific instance.

c.

Suitable action will be taken for each of the irregularity thereby giving a
compounding effect.

46

8.5.4 In case of irregularities not specifically mentioned/covered above, the

competent/appropriate authority of the concerned Oil Company will take
suitable action after enquiry and in accordance with the principles of natural
justice.

8.5.5 The cycle of calculating second and third instance shall be five years starting
from the date of first irregularity. In other words if an irregularity is established
as on date, records of previous 5 year period from this date will be examined to
determine whether the present irregularity is the first, second or the third
instance of irregularity. Irregularities under the previous MDG within the 5
years period will be counted as instances.

8.5.6 In respect of all cases of irregularities, a show cause notice, within 30 days
from the date of inspection will be issued to the dealer indicating all the
irregularities. However, in case samples of MS/HSD were drawn during
inspection then the show cause notice will be issued within 30 days of test
results. The show cause notice should be issued along with all reports and
other documents, etc. which forms the basis of the notice.

8.5.7 The dealer would have a period of 15 days to reply from the date of receipt of
show cause notice.

8.5.8 Upon receipt of the reply to the show cause notice, the authorized officer of the
OMC will review the charges leveled and the reply received and pass a
speaking order preferably within a period of 45 days from the receipt of the
reply. The speaking order shall indicate complete details of the irregularities
committed the reply of the dealer and detailed reasons as to why the reply is
acceptable / not acceptable to the official.

47

8.6

In case of Critical irregularities leading to termination, the Head of the State

office/Regional office/Zonal office of the concerned OMC or their nominee
before recommending / approving the termination of dealership will provide a
personal hearing to the signatories to the dealership or their nominee(s).
However, if signatories to the dealership or their nominee (s) fail to attend the
hearing on an appointed date, one more chance will be given and after that the
case may be processed ex party based on available facts.

8.7

In the case of all critical major and minor offences committed by the RO
dealers under the Marketing Discipline Guidelines, other than the offences
where the sales and supplies are to be stopped, sales and supplies to the RO
will continue during the investigation period upto the time the appeal is
disposed off.

Under existing laws, Control Orders etc., various authorities, Acts / Rules of Central
Government/State Government in addition to Oil Company Officers are
empowered to carry out checks of the dealership for determining and securing
compliance with such laws/Control Order.

If any malpractice or irregularity is

established by such authorities after checking, the same would also be taken as a
malpractice or irregularity under these guidelines and prescribed action would be
taken by the Oil Company, on receipt of advice from such authority.

In cases of action taken for some of Major / Minor irregularities where there is only
fine and no suspension of sales and supplies involved, such fine should be paid by the
concerned dealers within a period of 30 days from the date of notice by the company.
If not paid within this period, the action of suspension of sales and supplies would be
taken from the 31st day for a period of 15 days. The fine should be paid within this
suspension period failing which the suspension would be extended for another 15
days. If fine is not paid within the extended suspension period, the dealership would
be terminated.

48

8.8

Authority to take action:

i)

The action of termination and all other critical irregularities will be approved by
Regional head/State head/Zonal head of the concerned oil company (General
Manager and above). However, in respect of SC/ST category dealerships
termination will be approved by the Director (Marketing) HQ.

ii) In respect of major irregularities, the approving authority would be an

authorized

officer

not

below

the

rank

of

Dy.

General

Manager

at

State/Region/Zonal level.
iii) In respect of minor irregularities the approving authority would be the head of
Territory / Regional / Divisional office.

8.9

Appellate proceedings:

1.

In case of orders in critical irregularities, the dealer will have the right to
appeal within a period of 30 days from the date of receipt of order,
before the appropriate authority who will be empowered to decide the
matter and the appeal shall be disposed off preferably within 90 days
from the date of filling the appeal in the office of the appellate authority.
During this period also, the RO will be kept open if the sales and
supplies were not suspended earlier.

2.

For all appeals in case of critical irregularities, except termination in

case of SC/ST dealerships, the appellate authority will be the ED (Retail)
in the Head Quarters or any other ED level officer at the Head Quarter
so nominated by the company.

For all cases of termination of SC/ST

dealerships, the appellate authority will be a Director other than

Director (Mktg.) of the OMC.

49

8.10

IRREGULARITIES / MALPRACTICES IN RESPECT OF SKO DEALERSHIPS

In respect of SKO-LDO dealerships, the following are the irregularities which are
grouped under critical, major and minor.
Critical Irregularities:
1. Short delivery of product (Weights & Measures seals tampered)
2. Totaliser seals found tampered.
3. Unauthorized purchases / sales / exchange of SKO or any product which could
be used as a substitute for this product
4. Stock variation between physical stock and book stock beyond permissible
limits
Stock variation between physical stock and book stock beyond permissible limits
as established by an officer authorized for only search & seizure under Kerosene
Control Order, 1993: Sales and supplies to be suspended immediately Dealers
explanation to be called for. a) If explanation is found satisfactory, sales / supplies
to be r esumed. b) If explanation is found unsatisfactory, penal action in line with
unauthorized purchase / sales.
Major Irregularities:
1. Overcharging.
2. Non-observance
of
Govt.
regulations
and
Company's
guidelines/instructions, if any, on sale and distribution of SKO.

operating

Minor Irregularities:
1. Short delivery of products (Weights & Measures seals intact).
Penalties in respect of SKO-LDO dealerships:
In respect of proven critical irregularities, the dealership be terminated at the 1 st
instance.
In respect of major irregularities, the dealers allocation will be reduced by 50% for 3
calendar months after taking due approval from the State Govt.
In respect of minor irregularities, a warning letter be issued.
However, any action against a SKO-LDO dealership will be taken only in consultation
with the local Civil Supplies Authorities as the action of OMCs should not result in
disruption of supplies of PDS SKO to the common people. In case the Civil Supplies
Authorities do not agree for the action, decided by OMCs which may involve
suspension of supplies/reduction of allocation, a strong warning letter to be issued to
the dealer.

In respect of SKO-LDO dealerships, all other provisions would apply as explained

under RO dealerships as applicable.
50

ANNEXURE 1
DENSITY RECORD
Tank No. DATE

MORNING
DENSITY

Product TANK TRUCK RECEIPT

DENSITY
COMPARTMENT

DENSITY
AT15 DEG
C AS PER
CHALLAN

Month DENSITY AT 15 DEG C

AFTER DECANTATION AND
AFTER DISPENSING 50
LTRS.

51

ANNEXURE 2
COMPANY LOGO:

IOC/

BPC /

HPC

SAMPLE LABEL SUPPLY LOCATION

LOCATION : ______________

1.

Product : MS/HSD

2.

Source of sample :

DATE

Tank Lorry Filling Bay No. :________

Tank No.: _____________
3.

Samples drawn on ___________ at ___________ hours

4.

Quantity :

5.

Density at 15 Deg. C ___________

6.

Plastic Seal Nos. for the Aluminium container :

7.

Plastic Seal Nos. for the Wooden Box :

2 x 1 ltrs. For MS / 1

x 1 litre for HSD

Certified that empty containers are rinsed with the same

product just before drawing of samples, labeled and
sealed.

Signature: _______________
Name : _____________________
Designation: _________________________

52

ANNEXURE 3
COMPANY LOGO:

IOC

BPC

HPC

SAMPLE LABEL - TANK LORRY RETENTION SAMPLE

(DRAWN AT RETAIL OUTLETS)
SUPPLY LOCATION:_________DIVISION/TERRITORY/REGION:_______
1.

Name & address of the Retail Outlet:

2.

Name of the Oil Company

3.

Product : MS/HSD

4.

Source of sample:

5.

Tank Lorry No. ________Invoice No. ______

6.

Samples drawn on ____________ at __________ hours

7.

Density at 15 Deg C a) as recorded in the Challan ___________

b) of sample collected from the lorry _________

8.

RO Tank No. of Product decanted _______________

9.

Plastic Seals Nos. of Aluminium container : ________________

10.

Plastic Seals Nos. of wooden box : ________________

Certified that empty containers are rinsed in my presence with the same
product just before drawing of samples and the sample is retained after proper
labeling and sealing.

Signature of the Dealer/ Dealers representative: _________________

Name of the Dealer/ Dealers representative : _________________
Seal/rubber stamp

: ___________________

Place and Date

: _________________

Signature of T/L driver

: _________________

Name of T/L driver

: _________________

Transporters name

: _________________

Oil Company

: _________________

53

ANNEXURE 4
COMPANY LOGO:

IOC

BPC

HPC

SAMPLE LABEL - SAMPLES DRAWN FROM RETAIL OUTLET

SUPPLY LOCATION: ___________________

DIVISION/TERRITORY/REGIONAL OFFICE: _____________

1.

Name of the Retail Outlet :

2.

Name of the Oil Company :

3.

Product : MS/HSD

4.

Source of sample :

5.

Dispensing Unit .No. ___________

Tank No._______________

6.

Samples drawn on _____________ at ___________ hours

7.

Density at 15 Deg C a) as recorded in the Density register ________

b) observed by inspecting officer ________

8.

Date of last receipt of product in this tank :______________

9.

Tank Lorry No. of last receipt _______________

10.

Plastic Seals Nos. of Aluminium container : ________________

11.

Plastic Seals Nos. of wooden box : ________________

Certified that empty containers are rinsed in my presence with the same
product before drawing of samples and that one (1) set of samples out
of the 3 sets of samples drawn has been handed over to me for
retention in safe custody till further advice from Oil Company.
Signature of the Dealer/ Dealers representative : __________
Name of the Dealer/ Dealers representative: ______________
Seal/rubber stamp of the RO: ________________________
Place and Date

: ___________________

Sample drawn by :
Signature

: ___________________

Name

: ___________________

Designation

: ___________________

Oil Company

: ___________________
54

ANNEXURE 5
TEST TO BE CARRIED OUT ON MS / HSD SAMPLES
MOTOR SPIRIT
Sr.
No.
1
2
3

4
5
6

Tests
Appearance
Colour
Distillation
IBP Deg C
Recovery upto 70 Deg C, % V
Recovery upto 100 Deg C, % V
Recovery upto 150 Deg C, % V
Final Boiling Point, Deg C
Residue, % V
Existent Gum, g/m3
RON*
Sulphur content in PPM

Method of Test
P:ofIS:1448
Visual
Visual
P:18

Test Result

P:29
P:27
ISO 20847

* To be tested at a laboratory where facilities are available.

HIGH SPEED DIESEL
Sr.
No.
1
2
3
4
5
6

Tests
Appearance
Colour
Density @ 15 Deg C
Kinematic Viscosity at 40 Deg C, cSt
Distillation: Recovery upto 360 C % by
volume __
Sulphur Content in PPM

Method of Test
P:ofIS:1448
Visual
Visual
P:16
P:25
P:18

Test Result

XRF

The above mentioned tests will be carried out as per standard test methods as given
in the BIS specification, IS : 1448 P-methods for respective tests.

55

ANNEXURE 6
DEALER
-------------LOCATION

MAINTENANCE REPORT
To be printed in Hindi & English
(Companys Monogram)

DETAILS OF EQUIPMENT
1

PURPOSE OF VISIT Routine / Maintenance /

Break-down
Date last visited

NAME
MODEL
S.NO.
PRODUCT
YES

NO

REMARKS

1. Rate of Delivery Okay?

2. Filters/Strainers Cleaned?
3. Pulleys & Belts Adjusted?
4. Pump Hose & Nozzles Leaks rectified?
5. Pumping Unit Checked?
6. Electric Motor Switch Mechanism Oiled?
7. Metering unit (W&M Seal) Calibration checked and found correct?
8. Float & Air Separator Working satisfactorily?
9. Dial/Panel Glasses/Rubber Beading/Panel Locks Condition okay?
10. Internal Joints, Pipes, Glands Examined for leaks?
11. Hand Drive Mechanism Working satisfactorily?
12. Tank Manhole, Pipe/Connections/Vents/Fill, Dip points Examined for leaks?
13. Electric Fitting & Installation of Dispensing Unit/s checked for loose connections
and found satisfactory?
14. Water Dip Reading of Tank ( in cms)
15. Inter-connection of tank ?
16. Any addl. unauthorized fitting in the disp. Pumps / Tanks ?
17. Quality of silica gel in Ethanol blended MS vent pipe
18.
19.
_
Details of Repairs undertaken
Parts Replaced
Parts Required
DATE OF VISIT :
TIME OF
ARRIVAL_______ Hrs.
DEPARTURE ____ Hrs.
COPY No.1 DIVISIONAL ENGINEER/PME (WHITE)
COPY No. 2 RETAIL OUTLET (PINK)
DEPARTED
TO
:
___________
COPY No.3 FILE COPY (YELLOW)
SIGNATURE
DEALER
___________
SIGNATURE
----------------------------56

Companys Maintenance Representative

POSSIBLE PUMP COMPLAINTS
1)

Nozzle Leaking

2)

Hose Pipe leaking

3)

Hose pipe burst out

4)

Excess / short measure

5)

Pump running slow

6)

Pump running but does not deliver

7)

Register jumping

8)

Not resetting to zero

9)

Faulty reading on register

10)

Motor defective / burnt

11)

Product escapes from jump vent

12)

Pump delivers but does not register

13)

Operating handle defective

14)

Totaliser defective

15)

Hand drive operation defective

16)

Pump unit / flow meter leaking

17)

Water in underground tank

57

ANNEXURE 7

METHOD FOR DETERMINATION OF ETHANOL CONTENT IN 5% ETHANOL

DOPED MOTOR GASOLINE BY WATER EXTRACTION A FIELD TEST

1.

Scope :
This method covers the determination of ethanol content in ethanol doped
Motor Gasoline as field test at Supply Point, retail outlet etc. by using water.
This method provides a test of on line ethanol doped gasoline for ethanol
content by % by volume. The method can suitably be used for estimation of
ethanol content in ethanol doped Motor Gasoline and quantification 5% ethanol
(upto 8%) can be made by using the method in down stream. In case of
dispute the sample may be subjected to ASTMD 4815 method as referred
under IS:2796-2000, amendment no. 1 , for Motor Gasoline.

2.

3.

Reference :
a.

Motor Gasoline - Specification IS 2796

b.

Anhydrous ethanol for use in automotive fuel IS 15464

Definitions :
a.

Ethanol / Denatured Ethanol: Ethanol is the pure chemical, otherwise

known

as

CH3CH2OH

hydroxyl-ethane,
and

molecular

corresponding

formula:C2H5OH.

to

the

Nominally

constitution
anhydrous

ethanol made unfit for beverage use by the addition of noxious or toxic
materials (denaturants) and same is used as ethanol for the purpose of
doping Motor Gasoline.
b.

Motor Gasoline: A volatile mixture of liquid hydrocarbon, generally

containing a small amount of additives, suitable for use as a fuel in
spark ignition and internal combustion engines conforming to IS:2796.

c.

Ethanol Doped Motor Gasoline: A fuel consisting primarily of Motor

Gasoline doped with 5% vol./vol. of denatured anhydrous Ethanol for
fuel conforming to IS:2796 .

d.

Water: Distilled water is preferred for extraction procedure, but potable

water may also be used.

Outline of the test method:

58

30ml of water is added to 100 ml of ethanol doped Motor Gasoline taken in 100 ml
graduated stoppered cylinder. The mixture is shaken vigorously for about 30
seconds and cylinder is set aside for five minutes to observe the separation of
aqueous layer.

Increase in the volume of aqueous layer over and above 30 ml indicates the presence
of extractable ethanol in the ethanol doped motor gasoline sample tested. The exact
quantity of ethanol is then worked out referring the observation to the calibration
plot. The plot is made on exact quantity of ethanol extracted from 100ml of various
know concentrations of ethanol doped Motor Gasoline using 30 ml of water vis-a-vis
the concentration of ethanol used for doping. For better results the calibration chart
needs to be re-plotted whenever there is change in the source of Motor Gasoline.

5.

Significance and use:

The test method is employed to check the percentage of ethanol in ethanol doped
Motor Gasoline, as ethanol is having more affinity for mixing with water. The
addition of water in ethanol doped Motor Gasoline extracts the ethanol present in the
ethanol doped Motor Gasoline in to aqueous phase. The increase in the water level
indicates the quantity of extractable ethanol in Ethanol Doped Motor Gasoline.

6.

Apparatus:
a)
b)
c)

7.

100 ml glass stoppered cylinder with 1ml graduation (Class A Certificate)

10ml or 25 ml and 5 ml glass pipettee, (Class a Certificate)
Water

Calibration on known ethanol content in ethanol doped Motor Gasoline and

its extraction.
a)

b)
c)
d)
e)

f)
g)
h)

Prepare a set of standards of ethanol doped Motor Gasoline samples with the
concentration of ethanol in Motor Gasoline ranging from 0.5 to 8 ml by
percentage volume.
Take 100 ml of each sample above in 100 ml graduated stoppered glass
cylinder along with one blank Motor Gasoline (without ethanol).
Shake the stopper cylinder vigorously for at least 30 seconds.
Loosen the stopper of glass cylinder to release the vapor pressure in the
cylinder but do not remove the stopper.
Tighten the stopper and allow the stopper cylinder to sit undisturbed at
ambient temperature upright on the levelled surface for a period of at least
five minutes to allow the water-ethanol mixture to settle to the bottom.
If separation of two layers is not complete lightly tap the cylinder to
encourage the complete separation.
Record the level of aqueous layer in glass cylinder by reading the
measurement at the lowest part of the meniscus.
Presence of Ethanol % in ethanol doped Motor Gasoline=
Volume of aqueous layer observed in graduated cylinder-30 ml (water added
during testing).

59

i)

8.

Procedure:
a)
b)
c)
d)
e)

f)

g)

9.

Take 100 ml sample of ethanol blended Motor Gasoline under test in 100 ml
graduated stoppered glass cylinder (thoroughly cleaned and dried).
Add precisely 30 ml water to the sample taken in the glass cylinder and place
the stopper tightly.
Shake the stoppered cylinder vigorously for at least 30 seconds.
Loosen the stopper of glass cylinder to release the vapor pressure in the
cylinder but do not remove the stopper.
Tighten the stopper and allow the stoppered cylinder to sit undisturbed at
ambient temperature upright on the levelled surface for a period of at lease
five (05) minutes to allow the water-ethanol mixture to settle to the bottom.
If separation of two layers is not complete lightly tap the cylinder to
encourage the complete separation
Record the level of aqueous layer in glass cylinder by reading the
measurement at the lowest part of the meniscus.
Presence of Ethanol % in ethanol doped Motor Gasoline=
Volume of aqueous layer observed in graduated cylinder 30 ml (water added
during testing.

Calculation:
a)
b)

10.

Plot a graph on various values obtained inh as ordinate (X-axis) against

corresponding concentration of ethanol used in the standard blend as per a
as abscissa (Y-axis) including that of the observation made on the blank.

Observation made under 8.(g), is read against the standard plot and the
corresponding concentration of ethanol value is obtained.
Whenever there is a change in source of Motor Gasoline, for better results, it
is recommended to re-plot the graph as mentioned in the paragraph7 ( i ).

Report:
Report the fully corrected results to the nearest 0.5 ml.

11.

Precision and bias:

In the absence of calibration plot the value observed in aqueous phase can be
calculated to the nearest percentage volume as per the under mentioned precision
levels.
Based on the field test data, it was observed that a maximum of 4.6 ml (average) of
ethanol content is extracted in to the aqueous phase as against 5 ml ethanol added
in ethanol doped Motor Gasoline.
The Standard Deviation of the test results indicates +/- 0.24%
60

Considering the precision of the graduated glass cylinder, the maximum possible
measurement can be treated as 4.5% Volume with standard deviation of + 0.5%.
Thus the repeatability under the method is as under:

Percentage

Repeatability / Reproducibility

5 % v/v

0.5 ml (Approximately)

61

ANNEXURE - 8
SHRINKAGE ALLOWANCE - SAMPLE CALCULATION ILLUSTRATION

STATION : KODAIKANAL (Ex Coimbatore)

Shrinkage Allowance =
MS
: Rs. 135.92
HSD : Rs. 36.61

/ KL
/ KL
(w.e.f. 1.4.98)
MS
(Rs./Kl)

HSD
(Rs./Kl)

Ex-Storage Point
Road Freight
Toll Charges

21673.14
56.34
5.00
21734.48

9202.83
78.25
5.00
9286.08

Sales Tax
Commission
Shrinkage Allowance

5216.28
80.00
135.92
27166.68

1671.49
168.00
36.61
11162.18

24%

18%

Price Build up

Sales Tax Rate

For arriving at the volume represented by the Shrinkage Allowance, product price
excluding Commission, Taxes, Shrinkage Allowance etc. will be taken in proportion to
percentage of Shrinkage Allowance to nett price arrived t e.g.

Nett Price
Shrinkage Allowance
Proportion of Shrinkage Allowance to nett
price

MS
(Rs./Kl)
21734.48
135.92
0.63%

HSD
(Rs./Kl)
9286.08
36.61
0.39%

IMPORTANT NOTE
This percentage should be applied to the total receipts of product during the period
under inspection.

62

ANNEXURE 9
METHOD FOR ALLOWING SHRINKAGE ALLOWANCE
IN STOCK VERIFIATION

Stocks as per Opening Dip

KL

Plus Receipts

KL

Less percentage of Shrinkage

KL

A+BC =

KL

Less Sales as per Meter

KL

Closing Stock as per Book (D-E)

KL

Closing Stock as per Dip

KL

(arrived at as per Annexure I)

F compared to G +/- 4 % of G

63

ANNEXURE - 10
TVA LOSS - SAMPLE CALCULATION ILLUSTRATION
STATION :
TEMPERATURE VARIATION ALLOWANCE : MS

NIL
HSD

Rs. 38.40 per KL

For the period Apr/June `98

Price Build lup

HSD
(Rs/Kl)

Ex-Storage Point

8792.29

Road Freight

18.25

State Surcharge

54.55

Nett Price
Octroi

8865.09
453.20

Toll Tax

5.83

Total

9324.12

Sales Tax

1966.37

Commission

168.00
11458.49

1.

TVA applicable shown in each invoice as a credit and deducted in the total
invoiced amount.

2.

For arriving at the volume represented by TVA, product price excluding

commission, taxes will be taken and proportion in percentage of TVA to nett
price arrived at as follows :HSD
(Rs./Kl)

Nett Price
TVA

8865.09
38.40

Proportion of TVA to net price

0.43%

IMPORTANT NOTE

1.

This percentage should be applied only to actual quantity received during the
period under inspection for which TVA has been allowed by the Oil Company in
the invoices.

2.

Generally, TVA will be revised every quarter based on the average locating
temperature etc.
Method of Calculation : Same as Annexure - 9.

3.

64

ANNEXURE - 11
MOBILE LABORATORY SAMPLE TAG
LOCATION : ____________

DIVISIONAL OFFICE : _____________

1.

Name of Retail Outlet

2.

Name of Oil Company

3.

Product : MS/HSD

4.

Source of Sample ___________

Dispensing Unit Sl. No. ____________

Tank No. ___________

5.

Sample drawn on _________________ at _______________ Hours

6.

Plastic Seal Nos.

a) Aluminium Container
b) Wooden Box

Certified that empty containers are rinsed in my presence with the same product just
before drawing of samples and that one set of samples out of the three sets of
samples drawn has been handed over to me for retention in safe custody.

Signature of the Dealer/

: ___________________

Dealers representative
Name

: ___________________

Place and Date

: ___________________

Sample drawn by : Signature

: ___________________

Name

: ___________________

Designation

: ___________________

Oil Company

: ___________________

Mobile Lab Ref. No.

: ___________________

65

ANNEXURE 12
MONOGRAM OF OIL COMPANIES
SAMPLE DETAILS FOR MOTOR SPIRIT
Tested to Specification IS 2796 2008
Mobile Lab
Registration No.

Oil Company:

1.

Serial No. of the Sample

_______________

2.

Source of Sample

_______________

Dispensing Unit Sl. No.

_______________

Tank No.

_______________

3.

Test Report No. ML/MS ____________ Dt. _______________

4.

a) Name & Address of Retail Outlet

_______________

b) Name of the Oil Company

_______________

5.

Sample drawn by

_______________

6.

Sample drawn on

_______________

66

ANNEXURE 12 a

MOBILE LAB TEST REPORT FOR MOTOR SPIRIT

IS 2796 2008
S. No.

Test

Test

Test
Result
_____________________________________________________________
___
1.

Appearance

--

2.

Colour (Visual)

--

3.

Density @ 15 deg/C
(MS/HSD) Control Order)

P-16

a)
b)

c)

4.

Dealers Tank(s)
Density after last receipt
Density observed
By Mobile Lab
Variation
(between a & b)

Distillation
P 18
a)
IBP deg/C
b)
Recovery @ 70 deg/C
% vol.
c)
Recovery @ 100 deg/C
% vol.
d)
Recovery @ 150 deg/C
% vol.
e)
Final Boiling Point deg/C
f)
Residue % vol.

Remarks :

(Signature)
Dealer/Dealers Representative

(Signature)
Name :
Designation :
I/C of Mobile Lab

SEAL

SEAL

67

ANNEXURE 13
MONOGRAM OF OIL COMPANIES
SAMPLE DETAILS FOR HIGH SPEED DIESEL
Tested to Specification IS 1460 2005
Mobile Lab
Registration No.

Oil Company :

1.

Serial No. of the Sample

_______________

2.

Source of Sample

_______________

Dispensing Unit Sl. No.

_______________

Tank No.

_______________

3.

Test Report No. ML/HSD ____________ Dt.

_______________

4.

a) Name & Address of Retail Outlet

_______________

b) Name of the Oil Company

_______________

5.

Sample drawn by

_______________

6.

Sample drawn on

_______________

68

ANNEXURE 13 a
MOBILE LAB TEST REPORT FOR HIGH SPEED DIESEL
IS 1460 2005
S. No.

Test

Test

Test
Result
_____________________________________________________________
1.

Appearance

--

2.

Density @ 15 deg/C
(MS/HSD Control Order)

P-16

a) Dealers Tank(s)
Density after last receipt
b) Density observed
By Mobile Lab.Office
c) Variation (between a & b)

3.

Kinematic Viscosity
@ 40 deg. C cSt

P - 25

4.

Distillation
Recovery @ 360 deg/C
(% vol.)

P 18

(Signature)
Dealer/Dealers Representative

(Signature)
Name:
Designation:
I/C of Mobile Lab

SEAL

SEAL

69