6th March, 2003
Ministry of Petroleum & Natural Gas  


ADULTERATION IN PETROL AND DIESEL


LOK SABHA

Shri Ram Naik, Minister of Petroleum & Natural Gas, informed Lok Sabha today while replying to a question that the Government has been making all out efforts to curb adulteration and other malpractices in the distribution of petroleum products in the country. As part of these efforts, the number of Mobile Testing Laboratories has been increased to 50 from 23 during the last three years. The deterrent steps being taken include penalties and cancellation of dealerships by Oil Companies in terms of the Marketing Discipline Guideline and/or dealership agreement. In addition, the State Governments could also take action under the Essential Commodities Act, 1955 and the provisions of various Control Orders issued thereunder.

Shri Naik further informed the House that during the year 2000-01, out of 18366 Retail Outlets (ROs), adulteration was detected in 257 cases which constitute 1.4% of the ROs. In the next year (2001-02) out of 18687 ROs, adulteration was detected in 294 cases which is 1.6 % . In the current fiscal, April to December 2002, out of 19148 ROs, adulteration has been detected in 257 cases forming 1.3% of the total ROs.

Replying to another query as to whether the main reason attributed to adulteration has been low profits/commission of ROs, Shri Naik informed that with the dismantling of the Administrative Pricing Mechanism w.e.f. 1.4.2002, the Government is no longer fixing the dealers commission on petrol and diesel, which is now being fixed by the Oil Companies. He said that in addition to the commission on sale of petroleum products, ROs are being planned and encouraged to provide ancillary services like Auto Service Station, Convenio shopping facilities, etc., to increase their profitability and other customer services.