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.
Check one product's stock variation against the MDG limit MDG 5.1.11. What the limit means is on the permissible limit page.
Work out the variation
A helper only. Your oil company's own working decides. Use the totals for one product at a time.
The sum
- Book stock: A (start dip) + B (received) - C (shrinkage or TVA, if any) - E (meter sales) = F MDG Annexure 9.
- Variation: G (end dip) - F.
- Limit: 4% of G MDG 5.1.11 MDG Annexure 9.
What counts toward the limit
Handling loss on sales: petrol (MS) 0.75% up to an annual average of 600 KL, then 0.60%; diesel (HSD) 0.25% up to 600 KL, then 0.20% MDG 5.1.11. Shrinkage or TVA is taken off as C only where and when it applies MDG 5.1.11 MDG Annexure 9.
The calculator reads the two directions like this:
- Gain (tank holds more): set against 4% of G alone. The clause does not say how the handling loss applies to a gain, so it is not added MDG 5.1.11.
- Shortage (tank holds less): set against 4% of G, then 4% plus the handling loss. In between, the result is "depends".
Type the shrinkage or TVA allowance (rupees per KL) with the net price, or the percentage your oil company gives; shrinkage and TVA explains it.
Note: the sample percentages in Annexures 8 and 10 rest on 1998 prices MDG Annexure 8 MDG Annexure 10. Do not use them for your outlet; take the figures from your oil company.
An example
A made-up petrol outlet, in litres, with annual average sales under 600 KL:
- Start dip 16,000; received 20,000; shrinkage 0.52% (an example figure), so C is 104; meter sales 32,000; end dip 3,600.
- F is 16,000 + 20,000 - 104 - 32,000 = 3,896, so the variation is 3,600 - 3,896 = -296.
- 4% of G is 144. With the handling loss (0.75% of 32,000 = 240) it is 384.
- 296 is above 144 and below 384: the result is "depends".
What MDG leaves to your oil company
- The 600 KL line. MDG gives 600 KL as an annual average, not how it applies to your period. Above 600 KL the calculator shows a range; type the part your oil company counts in the first 600 KL for one figure.
- A shortage. Whether the handling loss counts with "up to 4%" MDG 5.1.11.
- Tank or product. MDG does not say which the check uses.
The oil company must establish an irregularity before it acts MDG 8.5.2. See penalties and the daily stock register.
Questions dealers ask
01How is stock variation calculated at a petrol pump?
Work out the stock the books say should be in the tank, then compare it with the closing dip. The gap is the variation, set against 4% of the closing dip MDG Annexure 9 MDG 5.1.11.
02Is the 4% worked out on opening stock or closing stock?
On the closing dip MDG Annexure 9. The clause itself says "4 % of tank stock" MDG 5.1.11.
03Why does the calculator say the result depends?
It means the shortage is within the limit only if your oil company counts the handling loss with the 4%. Ask it how it counts MDG 5.1.11.
04Does the calculator save or send my figures?
No. The sum is worked out on your own phone or computer, and nothing you type is stored or sent.
Read the official text: Marketing Discipline Guidelines 2024 (PDF on Bharat Petroleum's website) (also published on iocl.com).
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