Overcharging and selling normal fuel as branded: MDG penalties

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), the oil companies' rules for their dealers, selling normal petrol or diesel as branded fuel on purpose is a major irregularity: recovery of the differential price since the last inspection at the first instance, termination at the second MDG 5.1.10 MDG 8.3. Overcharging above the authorised selling price is major too: 15 days' suspension, then 30 days, then termination MDG 5.1.13 MDG 8.3. Not displaying the prices is minor MDG 5.1.15 MDG 8.4.

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 28 October 2026.

The three side by side

	Normal fuel sold as branded fuel	Overcharging	Prices not displayed
Defined in	MDG 5.1.10	MDG 5.1.13	MDG 5.1.15
Class	Major MDG 8.3	Major MDG 8.3	Minor MDG 8.4
Products	Petrol (MS) and diesel (HSD)	Petrol, diesel, CNG and Auto LPG	Petrol, diesel, CNG and Auto LPG
First instance	Recovery of the differential price since the last inspection	15 days' suspension of sales and supplies	Warning-cum-guidance letter
Second instance	Termination of the dealership	30 days' suspension	Rs 10,000 per irregularity
Third instance	n/a	Termination of the dealership	Rs 25,000 per irregularity

See how repeat offences are counted.

Selling normal fuel as branded fuel

MDG states it in one line: the intentional sale of normal MS or HSD as branded fuel MDG 5.1.10.
MDG defines neither "branded fuel" nor "intentional", and does not say how intent is shown. The irregularity must be established first MDG 8.5.2.
The differential price runs from the last inspection MDG 8.3. MDG gives no formula, so ask your oil company how it is worked out.

Overcharging

It is charging above the authorised selling price of petrol, diesel, CNG or Auto LPG MDG 5.1.13.
MDG gives no tolerance, rounding rule or method of proof. If unsure which price is authorised for your outlet, ask your oil company.
Kerosene wholesale dealers have their own rule on overcharging MDG 8.10. See kerosene dealers.

Displaying the prices

The dealer displays the authorised retail selling prices of the products sold MDG 1.3(i) MDG 5.1.15. The circular of 20.03.2025 lists the same duty and sets no penalty of its own Circular 20.03.2025. See display boards.

General practice, not an MDG rule:

Check the price board against the pump display whenever a price changes.
Make sure every attendant knows which nozzle sells which grade.
Note the date and time of each price change.

An illustration

Illustration: the last inspection of a made-up outlet was on 6 November 2024 and found nothing.

Date	Finding	Instance	Action
11 February 2025	Normal diesel sold as branded fuel, established	First	Recovery of the differential price since 6 November 2024 MDG 8.3
9 March 2026	The same again, within five years MDG 8.5.5	Second	Termination MDG 8.3

General information, not legal advice. For your own notice, speak to an advocate or your oil company.

Questions dealers ask

01What is the penalty if normal petrol is sold as power petrol?

It is a major irregularity when the sale is intentional: recovery of the differential price since the last inspection at the first instance, termination at the second MDG 5.1.10 MDG 8.3.

02What happens if a petrol pump overcharges?

It is a major irregularity: 15 days' suspension, then 30 days, then termination MDG 5.1.13 MDG 8.3. MDG states no tolerance, so ask your oil company if a case turns on a small difference.

03How do I complain about petrol pump overcharging?

Ask the outlet for its complaint book, which it must hand over on demand MDG 1.6(iv), and use the oil company contacts it must display MDG 1.6(viii). General practice, not an MDG rule: note the date, time, product and prices.

04Is it compulsory to display petrol and diesel prices at a petrol pump?

Yes. The dealer must display the authorised retail selling prices, and not doing so is a minor irregularity MDG 1.3(i) MDG 5.1.15 MDG 8.4.

05What is the differential price in MDG?

MDG gives no formula. General reading, not MDG text: the price gap between branded and normal fuel, recovered for the period since the last inspection MDG 8.3.

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

Penalties under the Marketing Discipline Guidelines 2024 (MDG 2024): what each irregularity costsWhat a petrol pump dealer faces under the Marketing Discipline Guidelines 2024 for a critical, major or minor irregularity, and how sales get stopped.

Repeat offences under MDG 2024: how a second or third instance is countedHow the Marketing Discipline Guidelines 2024 count a second or third instance over five years, and what follows when several irregularities come together.

Boards required at a petrol pump: stock, density and price boardsBoards, notices and stickers that Marketing Discipline Guidelines 2024 require a petrol pump to display, with the clause for each and what a miss costs.

MDG irregularities: is my lapse critical, major or minor?Find where a petrol pump lapse sits under the Marketing Discipline Guidelines 2024: critical, major or minor, sorted by topic, with links to detail pages.

About Dealer Kavach (advertisement)

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About this page. This page is a plain-language explanation published by MDG Services, a brand of VRUOOM PRIVATE LIMITED (CIN U29194HR2021PTC098450). It is general information, offered free of charge. It is not the official text of any rule.

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Check the official source. The Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) and related circulars are issued by the oil companies. Rules, amounts and dates can change, and amendments may reach dealers directly without being public. Before you act, read the current documents on the oil companies' own websites (iocl.com, bharatpetroleum.in, hindustanpetroleum.com) and ask your own oil company's officer. If this page and the official document differ, the official document is the one to follow.

What the amounts mean. Amounts in the guidelines are the minimum action. The oil company may take higher action, up to ending the dealership. Do not treat any amount shown here as your full exposure.

Court and Parliament items. Where we mention a court order or a statement in Parliament, we report what was said on the date shown. It is not the rule for your outlet, and the position may have changed since. Your dealership agreement and the oil company's current guidelines decide.

Not legal advice. This is general information, not legal advice. For your own notice, reply or appeal, speak to an advocate or your oil company. Examples use made-up outlets.

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