Water in the underground tank of a petrol pump: what to do

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), the dealer records a water dip every day and reports any water at once to the controlling company office MDG 1.4.1(b). The company's maintenance representative dips the tanks on every visit, and steps are taken to remove any water found MDG 4.4. For ethanol-blended petrol, the ethanol content is checked after the water is out. If it is outside the desired range, sales stop MDG 4.3(c).

The Marketing Discipline Guidelines 2024 (MDG 2024) are the oil companies' rules for their dealers, and bind dealers through the dealership agreement. This page is a plain-language explanation by MDG Services (a brand of VRUOOM Private Limited). It is not the official text and is not connected with or approved by IndianOil, BPCL, HPCL or any government body, so please check the current guidelines and circulars on the oil companies' own websites and with your oil company officer before you act.

Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 1 November 2026.

Who checks the tank for water

When	Who	What	Clause
Every day	Dealer	Records the water dip. It forms part of the daily stock register, and each tank's morning dips are also kept	MDG 1.4.1(b) MDG 1.3
Every maintenance visit	Company's representative	Dips the underground tanks for water	MDG 4.4

If water is found

Report it at once to the controlling company office MDG 1.4.1(b).
Steps are taken to remove the water MDG 4.4.
Petrol blended with ethanol: once the water is out, the ethanol content is checked before the product is released. If it is outside the desired range, stop sales and tell the controlling office MDG 4.3(c).

The test follows IS 2796 (E5, E10), IS 17586 (E12, E15) or IS 17021 (E20), each in its latest revision MDG Annexure 7. Check the current version.

If water seeps into the tank

The company's representative checks all the tank openings and arranges the fix: new packing and gaskets, and any missing caps put back MDG 4.3(c).

Note: MDG does not say who removes the water, how fast the company must come, or what the desired ethanol range is. Ask your oil company.

Water in a tank lorry compartment before decanting is a different case: see short dip and water and water finding paste. For other repairs, see breakdowns and leaks.

Questions dealers ask

01Water found in petrol tank: what should I do?

Report it at once to the controlling company office MDG 1.4.1(b). Steps are then taken to remove the water MDG 4.4, and for ethanol-blended petrol the ethanol content is checked before the product is released MDG 4.3(c).

02When is ethanol checked after water is found in the tank?

After the water is removed and before the petrol is released for sale. MDG asks for this check for ethanol-blended petrol (Motor Spirit), and names none for diesel MDG 4.3(c).

03Who fixes water seeping into an underground tank?

The company's maintenance representative checks all the tank openings and arranges the fix MDG 4.3(c).

04What if product seems to be leaking out of the tank?

If you suspect loss of product through a tank leak, report it to the controlling office MDG 4.3(c).

Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).

Pump breakdown or leak: who fixes whatWho repairs what at a petrol pump under MDG 2024: company equipment, dealer upkeep, pipeline and tank leaks, and the Maintenance Job Report (Annexure 6).

Short dip or water in a tanker: what MDG 2024 says to doWhat a dealer does when a tank lorry compartment dips short or shows water under Marketing Discipline Guidelines 2024: top-up, invoice record, signatures.

Water finding paste for petrol, diesel and ethanol blendsWhat Marketing Discipline Guidelines 2024 say about water finding paste for petrol, diesel and ethanol blends, the daily water dip and the ethanol check.

Petrol pump daily stock register: what MDG 2024 requiresWhat a petrol pump's daily stock register holds under Marketing Discipline Guidelines 2024: morning readings, dips, water dip, testing litres, receipts.

About Dealer Kavach (advertisement)

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