Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 2 November 2026.
Who this covers
Oil companies appoint SKO dealers, also called wholesale dealers. State Governments appoint the ration shop retailers. The dealer lifts the kerosene at the oil company's depot; in a few places, such as hilly areas, it is delivered MDG 2024, chapter 6. The company's side is on oil company duties.
The seven duties
| Duty | Clause |
|---|---|
| Sell blue-dyed kerosene only to the people it is meant for | MDG 2024, chapter 6, item 1 |
| Charge no more than the price fixed by the Government or the oil company | MDG 2024, chapter 6, item 4 |
| Do not refuse a consumer on a working day in working hours while you have stock, unless the Government or the oil company directs otherwise | MDG 2024, chapter 6, item 2 |
| Do not close the premises or storage in working hours without the oil company's prior written permission | MDG 2024, chapter 6, item 3 |
| Take all reasonable steps to keep adequate stock at all times | MDG 2024, chapter 6, item 5 |
| Display a stock-cum-price board at the business and the storage | MDG 2024, chapter 6, item 6 |
| Keep a daily account of purchase, sale and stock | MDG 2024, chapter 6, item 7 |
Irregularities and what follows
| Class | Lapses | Action |
|---|---|---|
| Critical | Short delivery with Weights & Measures seals tampered; tampered totaliser seals; unauthorised buying, selling or exchange of kerosene or a substitute; a gap between physical and book stock beyond permissible limits (see below) | Termination at the first instance, if proven |
| Major | Overcharging; not following Government regulations or company guidelines on selling kerosene, if any | Allocation cut by 50% for 3 calendar months, after State Government approval |
| Minor | Short delivery with Weights & Measures seals intact | A warning letter |
Before acting, the oil company consults the local Civil Supplies Authorities. If they do not agree to a suspension or a cut, a strong warning letter goes instead MDG 8.10. Clause 8.10 carries other provisions over "as applicable"; MDG does not say how 8.5 and 8.9 apply to kerosene dealers. The 8.9 appeal is for termination only MDG 8.9. Ask your oil company.
If stock does not match the book
When an officer authorised only for search and seizure under the Kerosene Control Order, 1993 establishes a variation beyond permissible limits MDG 8.10:
- Sales and supplies stop at once, and the dealer is asked to explain.
- If the explanation is satisfactory, they resume.
- If not, the action for unauthorised purchase or sale applies, which is critical.
What MDG leaves open
- A class for other lapses. 8.10 names none for a closed godown or a missing stock-cum-price board MDG 8.10.
- A kerosene stock limit. No figure is given. The limits in 5.1.11 are for MS and HSD MDG 5.1.11. See stock variation.
- Stopping sales versus consulting Civil Supplies. A stock variation stops sales at once, yet action needs that consultation. MDG does not say how the two fit MDG 8.10.
General information, not legal advice. For your own notice, speak to an advocate or your oil company.
Questions dealers ask
01What are the duties of a PDS kerosene dealer under MDG?
Seven, in Chapter 6: sell blue-dyed kerosene to the intended people at no more than the fixed price, stay open and stocked in working hours, display a stock-cum-price board and keep a daily account MDG 2024, chapter 6.
02Can a kerosene dealer refuse to sell or keep the shop closed during working hours?
Not on a working day in working hours while stock lasts, unless the Government or the oil company directs otherwise MDG 2024, chapter 6, item 2. Closing needs the oil company's prior written permission MDG 2024, chapter 6, item 3.
03What is the penalty for overcharging by a kerosene dealer?
Overcharging is major: a 50% allocation cut for 3 calendar months, after State Government approval and Civil Supplies consultation. A strong warning letter goes instead if they do not agree MDG 8.10. Clause 8.5.1 calls the actions a minimum; ask your oil company how it applies MDG 8.5.1.
04What are the critical irregularities for a kerosene dealer?
Short delivery with tampered Weights & Measures seals, tampered totaliser seals, unauthorised buying, selling or exchange, and a stock gap beyond permissible limits. Once proven: termination at the first instance, but a stock gap first goes through the dealer's explanation MDG 8.10. Clause 8.5.1 calls the actions a minimum; ask your oil company how it applies MDG 8.5.1.
05What happens if a kerosene dealer's stock does not match the book?
If an officer authorised only for search and seizure under the Kerosene Control Order, 1993 establishes a gap beyond permissible limits, sales and supplies stop at once while the dealer explains. An unsatisfactory explanation brings the critical action for unauthorised purchase or sale MDG 8.10.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
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