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A month of diesel credit: a worked example with figures

Short answer

In this made-up month, a transport business with a Rs 2,00,000 limit takes 12 diesel fills on credit, each after a request from its own phone. One fill goes past the limit and needs a manager's PIN. A Rs 2,12,400 bill follows, then a Rs 1,50,000 part payment, and credit opens up again.

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Facts checked on 27 October 2026. Published by MDG Services on 27 October 2026.

Example: a made-up business with made-up figures. It is not a real customer.

The set-up

Sharma Fuels, a made-up petrol pump, sells diesel on credit to Sharma Roadlines, a made-up transport business with three trucks: UP00 SH 1005, 1006 and 1007. Diesel is Rs 90 a litre on the dispenser. The owner sets a credit limit of Rs 2,00,000. Each request names a truck.

What happens at the nozzle

Each time a truck needs diesel, Sharma Roadlines sends a request from its own phone. At the nozzle, the nozzle man types the last 4 digits and sees a light. He types the litres and rupees as the dispenser shows them.

  • Day 9, no request. Truck 1006 arrives with none. By default the light is red, "No credit". The nozzle man fills for cash.
  • Day 16, rupees look wrong. He types 240 litres but Rs 2,160, a zero short. The phone warns that the rupees look far too low for the litres and asks him to check against the dispenser. He fixes it to Rs 21,600.
  • Day 21, near the limit. Rs 1,73,700 is owed, about 87 percent of the limit. The owner's Today screen lists Sharma Roadlines as near the limit.
  • Day 27, past the limit. Rs 2,000 is left; he types Rs 14,400. The light is amber, "Call the manager", and the phone asks for a manager's PIN. The transporter's phone then shows the fill marked as over the limit and allowed by the manager. See the light at the nozzle.

The twelve fills

DayTruckLitresRupees
2100515013,500
2100620018,000
4100712010,800
6100520018,000
8100618016,200
11100522019,800
13100716014,400
16100624021,600
18100526023,400
21100720018,000
24100627024,300
27100516014,400
Total2,3602,12,400

The bill and the part payment

On Day 30 the owner makes Bill 1 for the 12 fills: Rs 2,12,400. It goes from the owner's own WhatsApp, on the pump's letterhead, with a UPI QR if the pump has added its UPI ID (numbered bills). Sharma Roadlines pays Rs 1,50,000 by UPI. The owner records the money received on Bill 1.

  • Bill 1 shows as part paid, with Rs 62,400 due (2,12,400 minus 1,50,000).
  • The limit was Rs 12,400 over. Now Rs 1,37,600 is left (2,00,000 minus 62,400): the Rs 1,50,000 received opened that much credit again.

Questions people ask

01What if a transporter's credit limit is full at the nozzle?

It follows the rule the owner set for that transporter. Either a manager can allow the fill with a PIN, as on Day 27 here, or the nozzle shows "No credit" and the nozzle man fills for cash.

02Does Khata Kavach record cash fills?

No. A cash fill, like Day 9 here, does not become a line in the account.

03How much was still owed at the end of the month?

Bill 1 was Rs 2,12,400. After the Rs 1,50,000 part payment, Rs 62,400 was still due, which is Rs 1,37,600 below the Rs 2,00,000 limit.

04What does the owner see when a fill goes past the limit?

The fill is saved with the manager's name and marked as over the limit. The owner sees it among the fills to look at for the next 7 days, and the transporter sees the mark on his own phone.

Related pages

Khata Kavach worked examples: made-up pumps, real situationsWorked examples of diesel credit at a petrol pump with Khata Kavach: a made-up pump and made-up figures that add up, from a diesel month to a disputed fill.
Petrol pump credit management: diesel on credit to transportersAn owner's guide to giving diesel on credit to transporters: who gets credit, the limit in rupees, a request before each fill, what to record, billing, and when to stop.

About Khata Kavach (advertisement)

Khata Kavach is a shared credit book for petrol pumps, from MDG Services. The transporter asks before each truck fills, your nozzle man sees the limit before he fills, and both of you see every fill, payment and bill. It never lends or holds money.

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