(a) the number of cases of black-marketing of kerosene oil that have come to light
since 1999 and the action taken thereon;
(b) whether it has been found that there is a nexus between the civil supplies officials
and the kerosene oil dealers;
(c) if so, the steps taken by the Government to check the black-marketing of kerosene
oil; and
(d) the details of action taken against such black-marketers?
MINISTER OF PETROLEUM & NATURAL GAS (SHRI MURLI DEORA)
(a) to (d): Allocation of PDS kerosene is made by the Government of India to different
States/Union Territories (UTs) on a quarterly basis for distribution under Public Distribution
System (PDS). Further distribution within the States/UTs through their PDS network is the
responsibility of the concerned States/UTs. The Oil Marketing Companies (OMCs) undertake
regular and surprise inspections of their SKO dealers and take action against the defaulters
under Marketing Discipline Guidelines. OMCs have reported that 15 cases of black marketing
of kerosene oil have come to light since 1999 upto September 2007. Details of action taken
in the above mentioned cases are as under:
Action TakenNumber of casesTerminated04After suspension of sales and supplies, supplies yet
to resume03After suspension of sales and supplies, wholesale licence restored 08
Government is not aware about nexus between the civil supplies officials and the kerosene
oil dealers.
In order to check the black marketing of Public Distribution System (PDS) kerosene, the Central
Government have made provisions in the Kerosene (Restriction on Use and Fixation of Ceiling
Price) Order, 1993, issued under the Essential Commodities Act, 1955, according to which the
dealers cannot sell PDS kerosene at a price higher than the price fixed by the Government or
OMCs and that the PDS kerosene dealers should prominently display stock-cum-price board at
the place of business including the place of store at a conspicuous place.
Under the Control Orders issued by the Government to prevent diversion and black-marketing
of kerosene under the Essential Commodities Act, 1955, State Governments are empowered to
take action against those indulging in black-marketing and other irregularities.
Government have also approved a pilot project – ‘Jan Kerosene Pariyojana’ (JKP) for radically
revamping the PDS kerosene distribution network with the primary objective of ensuring that
this heavily subsidized product is actually made available in the required quantities at
subsidized prices to the intended beneficiaries; and secondly, to thus cap, reverse and
eventually eliminate the diversion of PDS kerosene for adulteration. One of the salient
features of this scheme is that supplies to the sub-wholesale points will be made under
the direct supervision and responsibility of the public sector OMCs. The scheme has been
launched on a pilot basis in 414 blocks in the country from 2nd October, 2005. The pilot
scheme has been further extended upto 31.12.2007. With a view to checking diversion of
subsidized kerosene and in order to monitor the movement of Tank Trucks transporting
petroleum products, the Government have advised the public sector OMCs for installing Global
Positioning System (GPS) based vehicle tracking system on all the tank trucks. The essential
features of the system is that the vehicle carrying PDS SKO is fitted with a device and can
be tracked on real time basis from the time it leaves the supply location and till it reaches
the destination. To check adulteration in auto fuels, and also to check diversion of
subsidized kerosene, Government have also advised OMCs to introduce marker in adulterants.
Public sector OMCs have commenced introduction of marker in kerosene on all India basis with
effect from 1.10.2006. Under the new system, Marker is being put in kerosene in all depots.
This system heralds the introduction of world-class technology to curb and eventually
eliminate the menace of adulteration of transportation fuels along the supply chain.
With the marker’s presence, adulteration even with very low levels of kerosene can be detected.
MS/HSD Control Order, 2005, SKO Control Order, 1993 and MDG 2005 have been amended for making
provision regarding introduction of marker system in Kerosene to check adulteration. A
committee has been set up in the Ministry to monitor the progress of the marker system.
Oil Marketing Companies in the Private sector have also been simultaneously asked to introduce
marker in Keros.