As announced by Petroleum Minister Dharmendra Pradhan in writing to the Lok Sabha, during the past three years and from April to June 2015 a total of 160 retail outlets have been pulled up for gross irregularities. The oil marketing companies have come down heavily on these petrol diesel retail outlets terminating licenses thereby causing them to shut down.
Pradhan further informed that over past three years, it was at 3,516 petrol diesel retail outlets where under measurement was detected while in 195 outlets adulteration was identified. These are state run outlets of Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.
Cancellation of licenses of petrol diesel retail outlets comes under Marketing Discipline Guidelines (MDG)/Dealership Agreement. MDG allows for cancellation of licenses in first instance of malpractices such as adulteration, tampering of seals and under-measurement of fuel. These rampant irregularities at both petrol and diesel retail outlets were noticed more in states of Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh and Rajasthan.
Earlier this month, Pradhan also informed the Rajya Sabha in writing that Public Sector Oil Marketing Companies (OMCs) through their Quality Control Cell conduct regular checks on the quality of fuel being supplied by them to retail outlets. The Cell is also authorized to check various irregularities such as tampering of seals, unauthorized fittings and gears in dispensing unit which may hamper the flow of fuel while termination of contracts are resorted to in the first instance itself.