MDG irregularities: is my lapse critical, major or minor?

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), the oil companies' rules for their dealers under the dealership agreement, every irregularity in Chapter 5 is critical, major or minor MDG 8.1. Critical ones, such as adulteration and tampered seals, mean termination at the first instance MDG 8.2. Major ones include a missing reference density, stock variation beyond the limit with the sample passing, records not kept since the last inspection, and overcharging MDG 8.3. Display, facility and service lapses are minor 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 19 October 2026.

Find your lapse

What goes wrong	Class	Read more
Fuel quality. Foreign matter put into petrol or diesel without authority, so it fails its Indian Standard, or a sample off the reference sample beyond the test method's limits MDG 5.1.1	Critical MDG 8.2	what counts as adulteration
Normal petrol or diesel sold on purpose as branded fuel MDG 5.1.10	Major, own ladder MDG 8.3	branded fuel and overcharging
Reference density missing at inspection MDG 5.1.9	Major MDG 8.3	reference density by 10 AM
Meters, seals and quantity. Short delivery beyond the legal limit, seals intact MDG 5.1.2(a)	Minor MDG 8.4	the 5-litre test
A seal missing, a different seal fitted or a wire broken; totaliser tampered, stopped on purpose or not reported when it stops; parts added, removed or altered in a dispensing unit MDG 5.1.2(b) MDG 5.1.3 MDG 5.1.4	Critical MDG 8.2	W&M and totaliser seals
Stock, sources and records. Unapproved storage or tank link, unauthorised buying or selling, or a tanker carrying unauthorised product found unloading MDG 5.1.5 MDG 5.1.6 MDG 5.1.7	Critical MDG 8.2	receiving a tanker
Stock variation beyond the limit while the sample passes MDG 5.1.11	Major MDG 8.3	stock variation
Required records not kept since the last inspection MDG 5.1.12	Major MDG 8.3	records to keep
Those records kept, but earlier required records missing MDG 5.1.12	Minor MDG 8.4	As above
Prices, displays and service. Charging above the authorised price of petrol, diesel, CNG or Auto LPG MDG 5.1.13	Major MDG 8.3	overcharging
No air facility, telephone or first aid box MDG 5.1.14(a)	Minor MDG 8.4	first aid box
Missing display items, such as prices, density, stock and notices MDG 5.1.15 MDG 5.1.17	Minor MDG 8.4	display boards
Service lapses: clean toilet, complaint book, housekeeping, uniforms, minimum service obligations MDG 5.1.14(b) MDG 5.1.17 MDG 5.1.18	Minor MDG 8.4	customer service, toilet rules
Automation. Manual mode or tank gauge off without authorisation, or deliberately disabling another automation part MDG 5.1.16	Major, own ladder MDG 8.3	automated outlets
Inspections and samples. Refusing or obstructing a sample or an inspection MDG 5.1.8	Major MDG 8.3	what an inspection checks

Costs by class: penalty ladders.

Beyond the table

Not on the list. For an irregularity MDG does not name, the oil company acts after an enquiry, following the principles of natural justice MDG 8.5.4.
Older guideline, replaced on 24.10.2024. MDG 2012 (Ver. 7, 30.11.2022) ranked a missing clean toilet and short delivery with seals intact as major MDG 2012 8.3. MDG 2024 ranks both minor MDG 8.4. See MDG 2012 against MDG 2024.
Kerosene. Wholesale dealers have their own irregularity lists MDG 8.10. See kerosene dealers.

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

Questions dealers ask

01Is a dirty toilet a major or minor irregularity under MDG?

Minor under MDG 2024: not providing a clean toilet is in the minor class MDG 5.1.14(b) MDG 8.4. The older guideline, MDG 2012, ranked it major. It was replaced on 24.10.2024 MDG 2012 8.3.

02What is a critical irregularity in MDG?

One where termination of the dealership is the minimum action at the first instance MDG 8.2. Before the oil company recommends or approves it, the dealership's signatories or their nominees get a personal hearing MDG 8.6.

03What is the difference between a major and a minor irregularity?

The action. A first major irregularity usually means 15 days' suspension of sales and supplies MDG 8.3. A first minor one means a warning-cum-guidance letter MDG 8.4.

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.

Marketing Discipline Guidelines 2024 (MDG 2024) vs MDG 2012: what changed for dealersMDG 2012 (Ver. 7) and MDG 2024 side by side: toilet and short delivery penalties, wages, service standards, appeals and what stayed the same.

Petrol pump show cause notice under Marketing Discipline Guidelines 2024 (MDG 2024): the timelineWhat MDG 2024 says follows an irregularity: a show cause notice within 30 days, 10 days to reply, a speaking order and a hearing before termination.

About Dealer Kavach (advertisement)

Dealer Kavach is an app from MDG Services that tracks your outlet's filings, renewals, inspections and daily reports, and reminds you before deadlines, in Hindi and English.

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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