Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 26 October 2026. Published by MDG Services on 26 October 2026.
Stock variation
What is the allowed tank variation at a retail outlet?
4% of tank stock, plus the handling loss in the next answer, and shrinkage or TVA where they apply MDG 5.1.11. Annexure 9 works the 4% on the closing dip, after the book stock is worked out MDG Annexure 9. See the stock variation limit.
What is the allowed operation loss for HSD when sales are under 600 KL a year?
MDG calls it handling loss: 0.25% of the quantity sold, up to an annual average of 600 KL. The quantity above 600 KL gets 0.20%. For MS the rates are 0.75% and 0.60% MDG 5.1.11. MDG does not say over what period the average is counted, so ask your oil company. See the calculator.
What happens if stock variation goes beyond the limit?
A positive variation stops sales of all products at once and sends samples to the lab. A negative one lets sales continue while the dealer explains, and supply stops if the explanation is not found satisfactory MDG 5.1.11. With the sample passing and nothing else found, it is a major irregularity MDG 8.3. See positive and negative variation.
Nozzle delivery
What is the permissible limit of variation in nozzle delivery?
MDG 2024 prints a band, not one figure: ±10 ml to ±25 ml per 5 litres. Inside it, sales go on, but without recalibration and re-stamping within 15 days they stop. Beyond the Legal Metrology limit, that nozzle stops at once MDG 5.1.2(a). The exact limit is in the Legal Metrology Act, 2009 and Rules. See the 5-litre test.
Density
By what time must the morning density be recorded?
Before the day's sales start and by 10 AM at the latest, at 15°C MDG 1.4.1(c) MDG 5.1.9. Record it again after each tanker, once at least 50 litres have gone through the pump MDG 1.2(xiv). See reference density.
How far may a tanker's density differ from the invoice?
By no more than ±3.0 kg/m³, with your reading brought to 15°C by the ASTM table MDG 1.2(iv). See the invoice check.
What density range do petrol and diesel need at 15°C?
Petrol 720 to 775 kg/m³. Diesel 810 to 845 (BS VI up to B7) or 820 to 860 (B8 to B20) MDG 7.6. See the density range.
Penalties and repeat instances
What are critical, major and minor irregularities?
Irregularities in Chapter 5 fall into three classes MDG 8.1. Critical means termination at the first instance MDG 8.2. Major usually means a 15-day suspension of sales and supplies first MDG 8.3. Minor starts with a warning-cum-guidance letter MDG 8.4. See penalties and which class is my lapse.
What is the cycle for counting second and third instances?
Five years. When an irregularity is established, the oil company checks the five years before that date, and earlier ones in that window count, including under the previous guideline MDG 8.5.5. The clause counts from the date of establishing and does not mention the inspection report date. See repeat offences.
General information, not legal advice. For your own notice, speak to an advocate or your oil company.
Questions dealers ask
01What is the meaning of MDG penalty?
It is the action an oil company takes once an irregularity from Chapter 5 is established: a letter, a fine, a suspension of sales and supplies, or termination of the dealership MDG 8.2 MDG 8.3 MDG 8.4.
02How long does a dealer have to reply to a show cause notice?
10 days from the notice MDG 8.5.7. The notice is due within 30 days of the inspection, or of the test results where samples were drawn MDG 8.5.6. The final order should come preferably within 45 days of the reply MDG 8.5.8.
03How long does a dealer have to appeal a termination?
30 days from receiving the order. The appeal in MDG is for termination only MDG 8.9.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
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