Adulteration at a petrol pump: meaning, penalty, who pays

Short answer

Under Marketing Discipline Guidelines 2024 (MDG 2024), the oil companies' rules for their dealers under the dealership agreement, adulteration is a critical irregularity, and the action for it is termination at the first instance, once it is established MDG 8.2 MDG 8.5.2. It covers foreign matter in the fuel, a failed lab comparison, and any other test the competent authority issues MDG 5.1.1. Fuel proven adulterated goes to the nearest refinery, and who pays depends on where the adulteration was proven MDG 5.1.1.

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 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.

  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.
  2. 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.
  3. 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 provenWho paysWhat the dealer receives
At the outletThe dealer: all expenses, including moving and pumping the product, cleaning the tank, incidental charges and local levies MDG 5.1.1The furnace oil value of the quantity that reaches the refinery MDG 5.1.1
By the transport contractor or crewThe contractor: all expenses, the loss from downgrading and any transit loss, besides action under the industry Transport Discipline Guidelines MDG 5.1.1The 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).

Related pages

Fuel sample failed at a petrol pump: what happens nextWhat happens when a fuel sample fails under Marketing Discipline Guidelines 2024: how the lab decides, your re-test right and the deadlines that follow.
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.
Petrol pump dealership termination under Marketing Discipline Guidelines 2024 (MDG 2024): the appealWhat MDG 2024 says about terminating a petrol pump dealership: who approves it, the 30-day window to appeal, who hears the appeal, and the 90-day target.
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.

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.

Not connected with the oil companies or the government. MDG Services is a private company. It is not connected with, approved by, endorsed by, or acting for Indian Oil Corporation Limited (IndianOil), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) or any government body. Our name shares letters with the short form "MDG" that the oil companies use for their Marketing Discipline Guidelines. That does not mean any link with them.

Names and marks. IndianOil, BPCL, HPCL and the names of their documents belong to their owners. We write them only to say whose rules we are explaining.

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.

Last checked. The "checked" date shows the day we last compared this page with the official documents. It does not promise that nothing has changed since.

Report an error or send a legal notice. If you see a mistake, or need to send us a notice, write to hello@mdgservices.in. We read every message, check it, and correct or remove the page.

Limits on our responsibility. We take reasonable care to keep this page accurate. To the extent the law allows, MDG Services and VRUOOM PRIVATE LIMITED are not responsible for loss caused by relying on this page alone instead of the official documents. This does not limit anything the law does not allow us to limit, including responsibility for fraud or for an error we knew about and did not correct. Your legal rights are not affected.

Advertisement. The box headed "About Dealer Kavach" is an advertisement for a paid service from MDG Services. This explanation is free and needs no sign-up or purchase to read.

Hindi pages. Hindi pages are written for easy reading. If a Hindi page and the official English document differ, the official English document is the one to follow.

Full disclaimer

Report an error or send a legal notice: hello@mdgservices.in