Lok Sabha Question No. 4119 (UNSTARRED), answered on 2017-03-27
Subject: Black-Marketing of Petroleum Products
Ministry: PETROLEUM AND NATURAL GAS
Asked by: PRATAPRAO GANPATRAO JADHAV

## LOK SABHA UNSTARRED QUESTION NO.  4119

## TO BE ANSWERED ON 27 TH  MARCH, 2017

## BLACK-MARKETING OF PETROLEUM PRODUCTS

## 4119.  SHRI PRATAPRAO JADHAV :

पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM & NATURAL GAS be pleased to state:

- (a)        whether  the  Oil  Marketing  Companies  (OMCs)  conduct  surprise  inspection  in order to check the black-marketing of petroleum products;
- (b)   if so, the details thereof along with the number of cases of black-marketing found during  the  last  three  years  and  the  current  year  and  the  action  taken  by  the Government in this regard;
- (c)   whether any nexus between the officials of OMC and black-marketers has been reported/noticed by the Government and if so, the details thereof; and
- (d)   the provisions made by the Government to resolve the said problem along with the implementation status of the said provisions?

## A N S W E R

पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्री ( स् विंत्र प्राार )

(श्री धमेन्द र प्रधा

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  &  (b)  :    Public  Sector  Oil  Marketing  Companies  (OMCs)  undertake  regular  and surprise  inspection  of  Retail  Outlets  and  take  action  under  the  provisions  of  the Marketing  Discipline  Guidelines  (MDG)  and  Dealership  Agreements  against  the outlets  found  indulging  in  irregularities/malpractices  including    black-  marketing. OMCs  also  carry  out  surprise  inspections  at  distributors  premises,  conduct  refill audits, checks at customers premises, en-route checking of delivery vehicles etc. to check black marketing and pilferage of LPG cylinders.   OMCs take punitive action under the prevailing   Marketing Discipline Guidelines (MDG) and the Distributorship Agreement against LPG distributors whenever irregularities are detected.

OMCs have reported, the details of inspections conducted and number of cases of black marketing  detected by OMCs during last three years and current year (April - December, 2016) as given below :

|                                                                           |   Retail Outlets |   SKO Dealerships |   LPG Distributors |
|---------------------------------------------------------------------------|------------------|-------------------|--------------------|
| No. of inspections                                                        |           650272 |             54086 |             133715 |
| No. of cases of Black Marketing (Overcharging/Unauthorized Purchase/Sale) |               80 |                12 |               1931 |

(c) :  OMCs have informed that there is no established case of nexus between their officials and black marketers.

(d)  :    In  exercise  of  the  powers  conferred  by  section 3  of  the  Essential  Commodities Act, 1955 (10 of 1955), in order to regulate the marketing of petroleum products and Liquefied Petroleum Gas (LPG), the Central Government  has enacted  the following Control Orders :

- (1)   Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993;
- (2)   Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999;
- (3)     Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of use in Automobiles) Order, 2000;
- (4)      Naphtha (Acquisition, Sale, Storage and Prevention of use in Automobiles) Order, 2000;
- (5)   Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000;

(6)      Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 2005;

Under these Control Orders, the State Governments  are also empowered to take  action  against  those  indulging  in  malpractices  such  as  black  marketing    of petroleum products and LPG.

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