Efforts to curb kerosene adulteration, diversion failed, says Murli Deora

After the hike of Rs 3 per litre in kerosene against the rise of Rs 16-17 per litre recommended by the Kirit Parikh-led expert group, focus has now shifted to the large-scale adulteration and black-marketing of the fuel. Petroleum and Natural Gas Minister Murli Deora has admitted that his ministry’s efforts to curb adulteration have failed to achieve the desired results.

“Due to the availability of kerosene at Rs 9 per litre, a large quantity is getting diverted to adulteration of diesel. This negates the efforts of the oil industry and the government,” the minister said. Deora told Business Standard that a substantial volume of kerosene was also smuggled across the border, since the prices there were much higher. He added the government may have to rework various measures taken so far to curb the menace.

A ministry official, who did not want to be named, substantiated Deora’s admission of adulteration of kerosene. “Tamper-proof locking system, monitoring of movement of tank trucks through the Global Positioning System (GPS), canalisation of kerosene import and the issuance of biometric cards to the users of PDS kerosene and domestic LPG beginning with some large cities have not controlled adulteration of kerosene.”

The official said the state-run oil marketing companies (OMCs) undertook regular surprise inspections at kerosene dealerships and LPG distributors. Besides, they had been empowered to take action under the Marketing Discipline Guidelines and Dealership Agreements against those indulging in black-marketing and diversion of the fuel. But, the problem remained.

The official said the OMCs had reported 25 cases of black-marketing of kerosene by wholesale dealers, while 332 cases of diversion/overcharging of domestic LPG had come to notice during April-December 2009.

The Centre had made provisions in the Kerosene (Restriction on Use, Fixation of Ceiling Price) Order, 1993, issued under the Essential Commodities Act, 1955, to prohibit dealers from selling kerosene at a price higher than the price fixed by the OMCs. State governments were empowered to take action against those indulging in black-marketing and other irregularities.