Positive vs negative stock variation at a petrol pump

Short answer

Under the Marketing Discipline Guidelines 2024 (MDG 2024), a positive variation beyond the limit (more fuel in the tank than the books show) stops sales and supplies of all products at once and sends samples to the lab. A negative variation beyond the limit (less fuel) lets sales continue while the dealer explains, and supply stops if the oil company does not find the explanation satisfactory MDG 5.1.11.

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 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 questionPositive (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 5.1.6No. Sales and supplies continue during the investigation
What happens to the samples?They go to the labThey 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 dealerAn 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 thatSupply 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.

CauseUsually shows up as
Temperature: warm fuel takes up more roomEither direction
A bad dip or a wrong entryEither direction
A pump delivering short or excess measurePositive if short, negative if excess
Testing litres not recordedEither direction
A leak in a tank or pipelineNegative

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).

Related pages

Petrol pump stock variation: the permissible limit (MDG 2024)Stock variation at a petrol pump under the Marketing Discipline Guidelines 2024: the 4% of tank stock, other allowances, and the action beyond the limit.
Petrol pump daily stock register: what MDG 2024 requiresWhat a petrol pump's daily stock register holds under Marketing Discipline Guidelines 2024: morning readings, dips, water dip, testing litres, receipts.
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.
What is dip at a petrol pump: dip rod, dip chart and water dipA dip is the height of fuel or water in a tank, read with a dip rod. How it becomes litres, when MDG 2024 asks for it, and how it feeds the stock register.

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