Water finding paste for petrol, diesel and ethanol blends

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), the dealer tests every tanker compartment for water with water finding paste before decanting, using a suitable paste for ethanol-blended petrol MDG 1.2(vii). MDG names no paste or brand. In the outlet's own tanks, the water dip is recorded daily and any water is reported at once MDG 1.4.1(b). After water is removed from an ethanol-blended tank, the ethanol content is checked before release; if it is outside the desired range, sales stop and the controlling office is told 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 24 October 2026.

What MDG requires

SituationWhat MDG requiresClause
Each tanker compartment, before decantingDip it and test it for water with water finding pasteMDG 1.2(vii)
Ethanol-blended petrolA suitable paste for that testMDG 1.2(vii)
Outlet tanks, every dayRecord the water dip daily in the stock register (the morning dips are recorded separately); report any water at once to the controlling company officeMDG 1.4.1(b) MDG 1.3
Company maintenance visitThe maintenance representative checks the underground tanks for water on every visit; steps are taken to remove any foundMDG 4.4
After water is removed from an ethanol-blended tankCheck the ethanol content before release; if it is outside the desired range, stop sales and tell the controlling officeMDG 4.3(c)

Water found in a tanker compartment is handled on short dip and water.

MDG names no brand or type of paste and gives no way to apply it, no waiting time and no ethanol range. Ask your oil company. General practice, not an MDG rule: many dealers coat the end of the dip rod with paste for the daily dip.

Why a suitable paste for ethanol blends

General knowledge, not MDG text: ethanol mixes with water, so in a blend some water can stay dissolved or separate as a water-and-ethanol layer (phase separation), and a paste made for plain fuel may not react the same way. MDG gives no reason.

After water is found in an ethanol-blended tank

The steps are on water in the underground tank: report the water at once MDG 1.4.1(b), have it removed MDG 4.4, then check the ethanol content before release MDG 4.3(c). If it is outside the desired range, stop sales and tell the controlling office MDG 4.3(c). MDG does not give the desired range or say who does the check; ask your oil company. For the full tanker order, see receiving a tanker.

Questions dealers ask

01What is water finding paste?

MDG uses the term MDG 1.2(vii) without defining it. General knowledge, not MDG text: it is a paste put on a dip rod that reacts where the rod touches water, so the water line can be seen.

02Which water finding paste is used for ethanol-blended petrol?

MDG requires a suitable paste and says no more MDG 1.2(vii). Ask your oil company which one it accepts.

03Is there a separate water finding paste for diesel?

MDG sets no separate paste for diesel: it requires water finding paste in every compartment of a tank lorry, whatever the product MDG 1.2(vii). Confirm the paste with your oil company.

04How is ethanol content tested?

Annexure 7 refers to the BIS specifications for the method: IS 2796 for E5 and E10, IS 17586 for E12 and E15, and IS 17021 for E20, latest revisions. It lists no test steps itself MDG Annexure 7. Check the current version of each standard.

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

Related pages

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.
Tanker decantation at a petrol pump: the MDG 2024 checklistHow a dealer receives and decants a tank lorry under the Marketing Discipline Guidelines 2024: 14 steps, from matching the invoice to recording density.
Marketing Discipline Guidelines 2024 (MDG 2024) glossary: terms and full formsA to Z meanings of the short forms and terms in MDG 2024 that a petrol pump dealer meets, such as MDG, OMC, RO, MS, HSD, MPD, NANO and reference density.

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