Checked against the Marketing Discipline Guidelines 2024 (Ver. 1, effective 24.10.2024) on 15 October 2026. Published by MDG Services on 22 October 2026.
Why the direction matters
Two things decide what happens: whether the gap is beyond the permissible limit, and whether the tank holds more or less than the books show MDG 5.1.11. MDG does not define the words. In the trade, positive means more than the books say, negative less.
The two cases, question by question
| Your question | Positive (more than the books) | Negative (less than the books) |
|---|---|---|
| Do my sales stop? | Yes, for all products, immediately. The clause links extra stock to adulteration and to unauthorised purchase MDG 5.1.6 | No. Sales and supplies continue during the investigation |
| What happens to the samples? | They go to the lab | They are drawn and tested |
| What does the oil company want from me? | A study to find the reasons. The clause mentions no explanation from the dealer | An explanation from the dealer |
| What can make it worse? | A failed sample brings action as for adulteration. A passed sample plus an established unauthorised purchase means action for that | Supply stops immediately if the explanation is not found satisfactory |
All of this is from MDG 5.1.11.
Note: a positive variation beyond the limit shuts sales of every product at once, before any lab result comes back. A negative variation beyond the limit does not MDG 5.1.11.
What decides the final action
With a positive variation, a failed sample brings action as for adulteration, which is critical MDG 8.2. A passed sample with an established unauthorised purchase is critical too MDG 5.1.6 MDG 8.2. Otherwise, with the sample passing, a variation beyond the limit is major in either direction MDG 8.3(iv). The limit and the ladder are on the stock variation page, the lab side on failed samples. A show cause notice is to be issued in all cases of irregularities MDG 8.5.6: see show cause notices.
Common causes, in practice
General practice, not an MDG rule.
| Cause | Usually shows up as |
|---|---|
| Temperature: warm fuel takes up more room | Either direction |
| A bad dip or a wrong entry | Either direction |
| A pump delivering short or excess measure | Positive if short, negative if excess |
| Testing litres not recorded | Either direction |
| A leak in a tank or pipeline | Negative |
Three have an MDG rule behind them: testing litres go in the stock register MDG 1.4.2(d), a pump delivering short or excess is to be recalibrated at once, arranged by the dealer or the company's maintenance representative MDG 4.3(a), and the dealer reports a suspected tank leak to the company's controlling office MDG 4.3(c). See the daily stock register for the entries that explain a gap.
General information, not legal advice. For your own notice, speak to an advocate or your oil company.
Watch the one-minute explainer
Questions dealers ask
01What happens if a petrol pump shows excess stock?
Within the permissible limit, nothing under this clause. Beyond it, samples go to the lab and sales and supplies of all products stop at once MDG 5.1.11.
02Is stock gain at a petrol pump a problem?
Beyond the limit it can be: a failed sample brings action as for adulteration, a passed sample with an established unauthorised purchase brings action for that, and otherwise it is a major irregularity MDG 5.1.11 MDG 8.2 MDG 8.3(iv). The oil company may take higher action MDG 8.5.1.
03Do sales stop when stock variation is found?
At once, only for a positive variation beyond the limit. For a negative one, sales continue during the investigation, but supply stops if the dealer's explanation is not found satisfactory MDG 5.1.11.
04What are the common reasons for stock variation at a petrol pump?
General practice, not an MDG rule: temperature, a wrong dip, a pump delivering short or excess, testing litres not recorded, or a leak. MDG asks for the testing litres to be written in the stock register MDG 1.4.2(d).
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
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