Public Sector Oil Marketing Companies (OMCs) namely, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) take action against the erring Retail Outlet dealers as per the provisions of Marketing Discipline Guidelines and Dealership Agreement subsisting between RO dealer and OMC. Further, the Central Government has issued the Motor Spirit and High-Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order, 2005 under Essential Commodities Act, 1955 which provides for punitive action against malpractices such as adulteration of petroleum products.
Oil Marketing Companies (OMCs) have a system of monitoring and surveillance at the Retail Outlets. Important initiatives taken by OMCs in this regard are as under:
- Filter Paper, Calibrated Density Equipment (Hydrometer) & 5 Liter Calibrated Measure are made available at the Retail Outlets for checking quality & quantity of MS.
- Regular inspections are carried out at Retail Outlets by OMC Senior Officers throughout the country. In case of stock variation beyond permissible limits, density failure, filter paper test failure, suspected tampering in DU and also during special campaigns or in case of specific complaint against the retail outlets, company officials draw samples and forward them for testing as per the laid down procedure. In case of any irregularities, action is taken as per the Marketing Discipline Guidelines agreement.
- A separate Quality Assurance Cell (QAC) has been created for carrying out inspections.
- Samples are drawn from petrol pumps at random and sent for testing to authorized laboratories. In case it is established that adulteration has taken place, appropriate action is taken against the erring dealers as per the provisions of the Dealership Agreement subsisting between OMCs and its Dealers.
- Surprise inspections are also carried out by mobile labs of OMCs where samples from Petrol pumps are drawn and tested.
- Tankers are being sealed before leaving company premises to protect against adulteration en-route. Tamper proof locking system has been introduced in tank trucks delivering petrol and diesel at Retail Outlets. 3-tier sampling system is followed to help in ascertaining exactly where adulteration could have taken place.
- Third Party Audit of Retail Outlet is also being arranged by OMCs for effective monitoring and benchmarking.
- Automation of Retail Outlets has been undertaken by OMCs which enable the real-time capture of sales transaction and monitoring of tank stocks and receipts.
- To reinforce commitment of Quality, OMCs carry out periodic campaigns to educate the customers on the facilities available. During the campaigns, the customers are invited to carry out the checks and also give comments on their observations.
OMCs have informed that as per provisions of Marketing Discipline Guidelines and terms and conditions of the Dealership agreement subsisting between OMC and the dealers, penal action in established cases of adulteration is termination of dealership.