Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 25 October 2026.
What counts as adulteration
MDG gives three parts, joined by "and/or". On its wording, any one can apply MDG 5.1.1.
- Foreign matter. A foreign substance is put into the fuel illegally or without authority, so that it no longer meets its Indian Standard: IS 2796, IS 17586 and IS 17021 for petrol (MS), IS 1460 and IS 16531 for diesel (HSD). The standards are revised from time to time, so check the current version of each.
- A failed lab comparison. The sample and the reference sample fall outside the test method's reproducibility or permissible limits. See what happens when a sample fails.
- Any other test the competent authority issues from time to time for identifying adulteration.
The penalty
Adulteration is a critical irregularity. The action is termination of the dealership at the first instance MDG 8.2.
Before termination is recommended or approved, the dealership's signatories or their nominees get a personal hearing, with one more chance if they miss the date, after which the case can go ahead without them MDG 8.6. See the show cause notice.
A dealer can appeal within 30 days of receiving the termination order. The appeal is for termination only MDG 8.9. See appeals.
Who pays for the fuel
Fuel proven adulterated goes to the nearest refinery MDG 5.1.1.
| Where it is proven | Who pays | What the dealer receives |
|---|---|---|
| At the outlet | The dealer: all expenses, including moving and pumping the product, cleaning the tank, incidental charges and local levies MDG 5.1.1 | The furnace oil value of the quantity that reaches the refinery MDG 5.1.1 |
| By the transport contractor or crew | The contractor: all expenses, the loss from downgrading and any transit loss, besides action under the industry Transport Discipline Guidelines MDG 5.1.1 | The full value of the product MDG 5.1.1 |
General information, not legal advice. For your own notice, speak to an advocate or your oil company.
Questions dealers ask
01What does adulteration mean at a petrol pump?
MDG counts more than adding something to the fuel. A failed lab comparison, or a test the competent authority issues for identifying adulteration, can also count MDG 5.1.1.
02What is the penalty for adulteration at a petrol pump?
Termination of the dealership at the first instance, once the irregularity is established MDG 8.2 MDG 8.5.2. These are the minimum actions, and the oil company may take higher action MDG 8.5.1.
03Is a failed fuel sample the same as adulteration?
On its wording, a lab comparison outside the reproducibility or permissible limits is one of the three alternative parts of the definition and can apply on its own MDG 5.1.1. Action follows only once the irregularity is established MDG 8.5.2.
04Who pays for adulterated fuel in my tank?
The dealer bears the expenses if the adulteration is proven at the outlet. The transport contractor bears them if it is proven to be the contractor's or crew's doing MDG 5.1.1.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
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