Manjunath Shamugham(27) was an IIM Lucknow alumni and an employee of the Indian Oil Corporation.

He was killed in Lakhimpur Khiri on 19th November 2005. He was on a drive preventing the adulteration of petrol in Uttar Pradesh. The murder of Manjunath Shamugham or Machaan as he was popularly known in his friend circles provokes a serious introspection on our society where the anyone who tries to meddle with the system and become a threat for the dadas of the society who can afford to bend the law as and when they require is eliminated. Pre independence India had land lords and kings who exploited common people for their benefits. Post independence the country became democratic and the the landlords and influential lot slowly transformed themselves as businessmen who do not work on the classical theory but exploit their influence in the government and the loopholes in the system to generate huge profits. A nexus exists between politicians and these goons, and anyone who tries to raise his voice is either bought at the right price by them or murdered. Oil is the lifeline of our economy and hence the people who distribute oil exert incredible control in their geographical domain. We have two powerful groups in the country. One has created economic power through knowledge, skill and enterprise and the other commands the political system and subverts the enforcement agency to prolong their control over the shrinking domain. Clearly the power today is shifting from the latter to the former and the latter cant take it. We the educated youth of the country represent the new order and posing a serious threat to the old order. Lets face this that we are the future of this country and we will fight to replace the old order. Incidents like Machaan should not dampen our spirits and neither should we compromise our ethics and values.

INDIAN INITIATIVES TO CONTROL FUEL ADULTERATION

11.0 INDIAN INITIATIVES TO CONTROL FUEL ADULTERATION It is necessary to dispense auto fuels of the right quality to achieve the targeted emissions from vehicles. Therefore, adulteration of auto fuels should be discouraged in all its forms. Off late India has also taken some initiatives to tackle this problem. As per the Ministry of Petroleum & Natural Gas (MoPNG) following Steps have been undertaken to control Adulteration of Fuel in the country:

(a) The Ministry of Petroleum & Natural Gas has caused oil companies takes various steps listed below to detect/ prevent adulteration of MS/HSD at retail outlets: -

Filter paper Furfural doping of Density Blue dyeing Regular/surprise Inspection Joint inspection of retail outlets Regular /surprise inspection Special vigilance drives, etc.

Test, PDS of of by by the mobile retail industry Kerosene, checks, kerosene, outlets, teams, laboratories,

(b) Further, in order to prevent diversion of kerosene meant for distribution under PDS for adulteration, MoPNG has directed the oil companies to ensure upliftment by the wholesalers as under:

60% by 10th 25% during next Balance 15% during the following week.

of

the week,

month and

(c) MoPNG has also advised State/UT Government from time to time

To ensure upliftment of kerosene by the whole-sellers from oil companies as per

upliftment To identify pattern loopholes in mentioned the distribution above. system.

To review scale of distribution of kerosene to various cardholders, with regard to

factors as availability of alternative fuels. To discontinue allocation of kerosene to the cardholders having double LPG connection and to discontinue allocation of kerosene for uses other than cooking and illumination. (d) MS/HSD control order has been amended for providing testing of MS/HSD for various parameters of specification apart from density like Octane No. of MS, Cetane No. of HSD, and any other parameter of MS/HSD specification indicated in the order.

(e) The state Govt. authorities are empowered under the MS/HSD control order to conduct inspections at the retail outlets and take appropriate action against the erring dealers in case of any mal-practices/irregularities detected. (f) MoPNG has also amended the kerosene control order making it mandatory for the parallel marketers to file end use certificate from their industrial customers. (g) An independent fuel-testing laboratory has been set up at Noida as directed by Hon'ble Supreme court and as desired by EPCA for testing of samples drawn from retail outlets in the NCT/NCR. (h) MoPNG have issued two control orders namely (i) the solvent, Raffinate and Slop (acquisition, sale, storage and prevention of use in automobile) order, 2000 in order to prevent unauthorized usage of these products for adulteration of MS/HSD at retail outlets. (i) In addition to above, following measures are at advanced stage of implementation to prevent adulteration of MS/HSD: -

Oil

companies are undertaking trial of various marker systems to detect/prevent adulteration of MS/HSD.

Oil companies are examining the feasibility of replacing the existing sealing system
for the tanks carrying MS/HSD with Assa Abloy Security locking system in order to prevent en-route adulteration f MS/HSD by transportation /Tank truck crew.

MoPNG

has directed the oil companies to increase the number of mobile laboratories.

Oil companies are setting up a number of laboratories equipped with facilities like
CFR engines to test octane /cetane number of MS/HSD sample etc all over the country. (j) Following methods are practiced for checking kerosene adulteration in MS:

Filter ASTM Distillation

paper

test

However, both these methods are qualitative in nature and detection of low level of adulteration with SKO is not possible. For this IOCL (R&D) has done substantial work and based on the findings, addition of 20-ppm furfural was recommended. (k) A method using GC as a powerful laboratory -based tool for detecting hydrocarbon-based adulteration was suggested. In this original GC Finger prints (chromatogram) on as many potential base fuels (pure fuels) such as automotive gasoline, diesel fuels and kerosene were essential .The approach was to generate chromatogram of the fuels procured from the market and than to compare the same against the chromatogram of the so called pure fuel for the hydrocarbons like hexane, heptane, etc. Any deviation in the concentration of hexane, heptane, etc in the fuel amounted to adulteration. However this method of detection of adulteration was later declared to be erroneous, arbitrary and irrelevant as it is claimed that there is nothing like pure gasoline, kerosene and diesel. Typically any of these fuels can be blended with different hydrocarbon streams of refinery meeting the product specifications characteristics as per relevant Indian and International norms. 11.1 Committees & Task Forces Constituted in India for Checking Fuel Adulteration BIS Study Group on Adulteration Bureau of Indian Standards (BIS) has constituted a task force to look into various aspects of fuel adulteration. The terms of reference of the study include reviewing current methods for testing of petroleum products, identifying strengths and limitations of currently used methods, reviewing of intermediate testing protocols and identification and validation of possible test methods. Biocode marker system: Upon successful demonstration of above technique, field trails were conducted at Sabarmati Terminal., Ahemdabad. However, the marker did not meet the requirements due to inconsistency in doping and tedious process of testing the samples. Spectrace Technique: M/s Rohm & HAAS have developed a new NDT for checking fuel adulteration. Based on successful demonstration, the same has been recommended for field trial at HPCL terminal at Vashi. The result of this trial reveals that chemical characteristics of the doped MS are in line with the BIS specifications and the marker responds to addition of adulterants in different proportions. The marker was also found to be stable. More trials with this technique are scheduled to be carried out in Delhi. R&D marker system:

IOCL R&D has developed a chemical based marker system, which is to be field tried at Devenghunti terminal of IOC near Bangalore. Study group of the Task force evaluated various type of marker system . Evaluation was done jointly by IOC R& D and BPCL R&D at IOC, R&D centre. Details of the evaluation are mentioned in Annexure-V CPCB Working Group on Adulteration Central Pollution control Board has constituted a Working Group to formulate fuel specifications for the year 2005 under the Inter- Ministerial Committee to formulate Auto Oil Programme for year 2005 constituted by MOEF. One of the terms of reference was to draw a strategy for monitoring the fuel quality at the petrol pumps to check adulteration. MoPNG Task Force on Adulteration Ministry of Petroleum & Natural Gas has constituted a Task Force to examine the use of solvent, raffinate and slop in automobile fuel. The Task Force identified various possible fuel adulterants for gasoline and diesel (Table-3&4). The recommendations of this Task Force are:

The chemicals/solvents, which are potential adulterants, are presently cheaper than
gasoline and diesel. The prices of these solvents should be brought at par with conventional fuels to discourage adulteration.

If prices cannot be increased for any reason, then the solvents should be included
under the Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of use in Automobile) Order, 2000. Any petroleum derivatives having a density 0.66 to 0.94 g/ml at 15 degrees centigrade and /or boiling range 35 to 380 degrees centigrade may be covered under the subject control order. The samples from the suspected stocks would be tested in any authorized laboratories for full BIS specifications compliance.

The Task Force felt that return streams from petrochemical plants to the refineries
may be getting diverted for adulteration, as such all return streams from petrochemicals after removal of necessary ingredient should be returned to the nearest refinery and the onus of return will be with the users only. Moreover, no slop is to be allowed to be market directly. Anti-Adulteration Cell Government of India has set up an Anti Adulteration Cell headed by a Director General. The functions of the Anti Adulteration Cell are: -

1. Prevention of adulteration and other malpractices in the sale of petroleum products. 2. To conduct inquiries into complaints against Dealer Selection Boards. 3. To act as a coordinating agency for oil companies and Central/State Governments departments in the matters related to adulteration of fuel. For any complain /information regarding fuel adulteration customers can contact to anti- adulteration cell at numbers given in the following table: Table 5: Contact numbers & E- mail addresses of four zones of anti-adulteration cell for launching complain against adulteration.

Designation Director General Jt. Director (HQ)

Telephone (Office) 26104611 26104502

Telephone (Residence) 26111280

Fax

E-mail

26104632 dg@antiadulterationcell.com

Dy (A & F)

Director

26713590

North region ( STD code-011) Regional Director 26104711 Jt. Director 26104428 Sr. Dy. Director 26104703 Dy. Director 26104703 Dy. Director 26104428 West region ( STD code-022) Regional Director 26540371 Dy. Director South region ( STD code-044) Regional Director 28207531 Jt. Director 28253808 Dy. Director 28253808 Dy. Director 28253808 East region ( STD code-033) Regional Director 22204532 Dy. Director 22204532 Asstt. Director 22204532

26714268 rdn@antiadulterationcell.com

26504376

26540372 rdw@antiadulterationcell.com

24363121

28254003 rds@antiadulterationcell.com

22211441 rde@antiadulterationcell.com

Auto Fuel Policy Report A Committee of Experts was constituted by the Government of India to lay down the road map for auto fuel policy in the country. Besides other issues, the Committee also recognized the problems of fuel adulteration and recommended the following: v Expansion of the tank lorry locking system introduced in metro cities to other cities.

Depending on the results of the pilot projects for the use of special markers to detect
and prevent adulteration in petrol and diesel, a scheme for the use of these markers on commercial basis be implemented. Encouraging setting up of consumer pumps by the transport companies operating city public transport. Independent inspection and checks by agencies other than the oil companies.

Setting up of an independent anti-adulteration cell and the joint inspection approach

put in place in the NCT of Delhi under the directions of the Supreme Court has brought about improvements in fuel quality. Inspections by joint teams of antiadulteration cell state civil supplies and State Pollution Control Boards in polluted cities should be taken up. Responsibility for dispensing the right quality of fuels should be made obligatory to the oil companies.

Fuel Adulteration : Reasons, Legalities and Remedies

Retail - Overview Adulteration of fuel means that the fuel that is being bought by a consumer is not meeting the prescribed specifications. Adulteration of petrol and diesel is a big-ticket scam that involves an annual recurring loss of at least Rs.10,000 crore to the Exchequer. The reasons for adulteration The huge price differential between Petrol/Diesel and the adulterants available in the market place like Kerosene, Solvents, Naphtha, Slop oil, etc. and the easy miscibility of these products with Petrol/Diesel are the main reasons for adulteration.

Reasons for Price differential between Petrol/Diesel and adulterants Petrol Vs Naphtha/Solvents Difference in basic ceiling selling price Various Slate surcharges loaded on Petrol Differential Excise and Custom Duly Differential Sales Tax Diesel Vs Kerosene / Other adulterants Differential basic ceiling selling prices of PDS Kerosene and Diesel Differential Sales Tax Differential Excise and Custom Duty The Adulteration Spot Adulteration is indulged at the following places: During transportation by Transporter of Petrol/Diesel from Oil Company Depot to Retail Outlet Adulteration during transportation is indulged in by transporters who pilfer petrol/ diesel from the tank and add to thetank equal quantity of cheap adulterants so that the dealer cannot find out the same by quantity checks during unloading. In this process, the transporter is benefited monetarily. At Retail Outlets Adulteration by Retail Outlet dealers takes place at the Retail Outlet underground tanks by adding the adulterants in to the underground storage tanks. In this process, the Retail Outlets dealers get the monetary benefits. Government's steps to prevent diversion of PMS Kerosene for adulteration purposes In the year 1992-93, Government had allowed import and marketing of Superior Kerosene Oil (SKO) by private parties, called parallel marketers. At that time, SKO was in short supply and foreign exchange reserves were limited. It has been observed since that sometimes the imported SKO is substantially being diverted for adulteration in diesel and other unauthorized uses, by taking advantage of price difference between imported kerosene and diesel. This is also affecting diesel sales by Public Sector Oil Marketing Companies. It has been observed that against a projected growth rate of 3% in HSD sales during 2003-04, sales have actually registered a decline of 3.7% during AprilSeptember, 2003. Presently, Oil PSUs are producing SKO in excess of PDS requirement and can meet demand of industrial customers as well. Also, foreign exchange reserves are in a comfortable position in Country. Therefore, the concept of importing SKO for parallel marketing has lost its relevance. Keeping in view the misuse/diversion for adulteration, the import of SKO by private parties has

been canalized through public Section Oil Marketing Companies. Rules/Regulations relations relating to enforcement of quality of petroleum products Under the Essential Commodities Act, 1955, Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 1998 have been promulgated. This Order prohibits various malpractices taking place in petroleum trade like adulteration, pilferage, unauthorized exchange, unauthorized purchase, unauthorized sale, unauthorized possession, stock variation, over charging and Sale of offspecification product. The order stipulates that the delivery or Sale of Motor Spirit or HSD shall be made by dealers of Oil Companies only from authorised retails pumps outlets. In the earlier control order apart from stock verification checks, density check was the only test available to detect adulteration. However due to the advent and easy availability of various adulterants like Kerosene under Parallel Marketing Scheme (PMS), Naphtha, Solvents, etc., adulteration of which could not be detected using Density test alone, specifications of Petrol and Diesel were made part of the , above Order. Certain critical parameters, apart from distillation test, like Octane number rating for Petrol and Cetane Index test for Diesel were also provided for in the specifications. The new changes in definition of Petrol and Diesel were expected to act as deterrent against adulteration. Action can be taken under Kerosene (Restriction on Use and Fixation of Ceiling Price) (Amendment) Order, 1993 promulgated under Essential Commodities Act, 1955 against any person who is selling or using Kerosene imported under the Parallel Marketing System as a fuel or as an additive to the fuel in a motor vehicle. The order also provides for taking action against any person who is using Kerosene supplied under the PDS for any purpose other than cooking and illumination. To curb unauthorized usage of Naphtha, Solvents, Raffinates and Slops these products for adulteration of MS and HSD at Retail Outlets, MOP&NG has notified (i) Naphtha (Acquisition, Sale, Storage and Prevention of use in Automobile) Order, 2000 and (ii) Solvent Raffinates and Slop (Acquisition, Sale, Storage and Prevention of use in Automobiles) Order 2000 on June 5, 2000. Various authorities of State Governments not below the ranks, of Inspector and Oil Companies Officers not below the rank of Sales Officers, authorised by the Government are empowered to take action against any body, who contravene the orders, within their respective jurisdictions. Measures undertaken by the oil companies In order to curb adulteration of Petrol/Diesel at the Retail Outlets, Public Sector Oil Marketing Companies take the following measures: Furfural Doping of Kerosene: Doping of Kerosene with furfural is being done at the depots/terminals before supplying to the Kerosene dealers. The principle is to dope

Kerosene with furfural to 20ppm level. When this doped Kerosene is used for adulteration of Petrol/Diesel, the formation of a pink colour in Petrol/Diesel with aniline and glacial acetic acid mixture (1:9 ratio) is an indication of adulteration of Petrol / Diesel with Kerosene. Blue dyeing of Kerosene Kerosene distributed under Public Distribution System by PSU Oil companies is dyed blue to differentiate it from the Kerosene sold through Parallel Marketing Scheme. Mobile Laboratories With a view to facilitate on the spot test and quicken the pace of action taken, oil companies have introduced mobile laboratories which are conducting surprise inspections at retail outlets. Oil companies have increased the number of laboratories from 23 to 50.

Octane testing facilities To facilitate faster testing of samples, oil companies established IS Jabs with CFR engines to test Octane rating. Stock Verification At the time of inspection sales though dispensing pumps is reconciled with the tank stocks. Excess sales, if any, is an indicator of suspected adulteration and action is initiated against the dealer for adulteration. Inspections Field/Sr. officials of the concerned oil company and the Joint Industry teams carry out regular/surprise inspections as per the following schedule:- . Once in 3 months

By Sales Officer

By Officers of Gr. 'C' & above Once in 12 months By Joint Industry Teams 20% of ROs in each District once a year In addition, 10% of the Retail Outlets will be covered once a year under random inspections by officers of 'C' grade and above. While carrying out inspections, the officials check: The delivery of the dispensing pump (s) with the help of calibrated 5 liters measures; Density of Petrol & Diesel for detecting adulteration; For adulteration of Petrol/Diesel with Furfural doped PDS Kerosene. The formation of pink colour in Petrol/Diesel with Aniline and Glacial Acetic acid mixture (1:9 ratio) is an indication of adulteration of Petrol / Diesel with kerosene. The stock variation by reconciliation of stocks/sales.

Filter paper test: To enable customers check for adulteration of Petrol with Kerosene at retail outlets, oil companies provide Filter paper at

retail outlets. Accuracy of dispensing pumps: For enabling customers of verify the accuracy of dispensing pumps at retail outlets Weights & Measures calibrated 5 liters measure is made available with the dealer. Recent initiatives to prevent adulteration Marker - System Oil Industry conducted trials with the Marker System of M/s Rohm & Hass at Vashi. As per the trials conducted, products namely MS and HSD are doped with a marker at apre determined levels. Adulteration, if any, can be found out by measuring the concentration of the marker present in the fuel dispensed at the Retail Outlets. Variation in the concentration of the marker between the levels at which it was doped by the Oil companies and the levels which were found at the Retail Outlet is measured. Any dilution in the concentration of marker will indicate adulteration and the percentage variation in the concentration of the marker would indicate the percentage of adulteration, which has taken place.Industry is planning to commence marker trials in Delhi also during the current year. Sampling Procedure In this system, Oil companies retain samples of products despatched from the Terminals and Retail Outlet dealers are required to take a joint sample along with the tank truck crew before unloading the product and retain the same. Samples drawn from the Retail Outlets during inspections by inspecting officers shall be sent to the laboratory for analysis. If the sample drawn from the Retail Outlet fails to meet the specifications, Joint sample retained at the Retail Outlet before unloading and the sample retained at the despatch locations would be sent for laboratory analysis. The results are co-related and the point of adulteration can be found out and responsibility for adulteration can be fixed. Tank Truck Locking System A new system of sealing of tank trucks through a new locking system has been introduced. In this system, the trucks, which supply product to the retail outlets, are locked with unique/RO specific locks for which keys are available with the RO dealer only and a master key is available at the despatch location. These locks are tamper-proof and duplicate keys could not be made so easily. By introduction of this new locking system, en-route pilferage and en-route adulteration is expected to be eliminated. So far IOC has covered 94%, BPCL 80%, KPCL 90%. & IBP 85% of their Retail Outlets with this system. Oil,. companies are in the process of covering all the retail outlets, with these locks. IT solutions to adulteration In order to prevent adulteration arid pilferage during transportation of MS/HSD -from supply locations to the retail outlets, oil companies, have been examining various IT solutions such as tracking the movement of tank trucks carrying MS/HSD and 'Sealed Parcel Delivery System'. "Sealed Parcel Delivery System' includes the concept of electronic locks having the facility to log any operation of the lock from the time of sealing at the supply location upto the time of the

receipt at the retail outlet. Moreover, oil companies are also examining the 'Retail Outlet Automation System' which includes level, temperature, density and water interface measurements of MS/HSD tanks, etc. Through continuous monitoring of these parameters, quality and quantity of the products at retail outlets could be monitored. Both 'Sealed Parcel Delivery System' and 'Retail Outlet Automation System' can be integrated so that adulteration during transportation as well as at retail outlets could be prevented. The role of State Governments in curbing adulteration Functionaries of State Governments are empowered to check adulteration under the following control orders: The Kerosene (Restriction on Use and Fixation of Ceiling Price), Order, 1993; The Motor Spirit & High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 1998 The Naphtha (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 The Solvent, Raffinates and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 These Officers can enter and search any place stop and search any person or vehicle or premises inspect any book of accounts take samples of the product, and take action against the defaulters under various provisions of Essential Commodities Act, 1955. All the State Governments/Union Territory Administrations have been requested to conduct vigil/inspections at various private firms, factories, processing units, etc., under their jurisdiction so as to identify the perpetrators of adulterations and to take stringent action against them under the available legal framework. It has also been requested that all the State Governments/UT Administrations to furnish copies of Quarterly Report with respect to inspections conducted and follow - up action, thereof. Marketing Discipline Guidelines (MDG) To prevent adulteration of petroleum products arid other malpractices by dealers/distributors of Retail Outlets, LPG, SKO/LDO and also with an objective to bring uniform guidelines for all the four Oil Companies, Oil Marketing Companies with the approval of Ministry of Petroleum & Natural Gas issued Marketing Discipline Guidelines (MDG) for the dealers/distributors

in 1982. The guidelines provided for suspension and termination as penal action against violation of the guidelines. The guidelines were revised in 1994-95 to make it more stringent as the guidelines of 1982 were not effective. Imposition of fine on against unscrupulous dealers/distributors was introduced. Guidelines were again revised in 1998 and 2001 to make it more effective. The quantum of fine was increased substantially. However, the Federations/Associations of dealers/distributors have filled writ petitions in various High Courts against the revised MDG. The Delhi and Mumbai (Nagpur Bench) High Courts stayed the guidelines. (The stay granted by the Mumbai High Court pertained to LPG dealership). Subsequently, Delhi High Court vacated the stay but an appeal filed by dealers is pending. But there is no direction of this Court on the appeal. More stringent penalty of termination of Retail Outlets (ROs) dealership on the first established offence of adulteration and short delivery (with Weights and Measures seals tempered) in the Marketing Discipline Guidelines (MDG), 2005 has been approved by the Government and issued for implementation with effect from 01 August 2005. MDG 2005 provides for greater accountability and responsibility of OMCs to minimize the instances of adulteration and pilferage by ROs/transporters. The provisions of dealership agreements to check malpractices The relevant clauses of dealership agreements of different companies are that enable action against acts of adulteration by the dealer are as follows : "Notwithstanding anything to the contrary herein contained, the corporation shall be at liberty to terminate this agreement forthwith upon or at any time after the happening of any of the following namely : If the dealer shall contaminate or tamper with the quality of any of the products, supplied by the corporation................." Not to adulterate the Petroleum Products supplied by the company at all times to take all reasonable precautions to ensure that the Motor Spirit or H.S.D. is kept free from water, dirt and other impurities and served from the pumps in such condition... If the Licensees shall be guilty of a breach of any of the covenants and stipulations on their part contained in this agreement.." To take every reasonable protection against contamination of the products supplied by the Company by water, dirt or other things injurious to their quality and not in any way directly or indirectly after the Company's standard quality of products as delivered. The Company shall have the right to exercise at their discretion quality control measures for products marketed by the company. The Company shall be at liberty upon a breach by the Licensee/s of any covenant in this Licence forthwith to stop all supplies to the licensee/s for such period as the Company may think fit............."

Action taken by PSU Oil companies during the year 2001-2002 to 2004-05 for detecting adulteration and malpractices in Petroleum Products Results of Inspections carried out at Retail Outlets and malpractices detected during 2001-2002 to and 2004-05. 2001200 No. Of Inspections Conducted Irregularities/Malpractices Detected Discrepency In Stock Suspected Product Adulteration Over Charging unauthorized Sale Short Delivery Others Total Action Taken Termination Suspension Of Sales & Supplies Explanation Called For/Show cause Notice Or Warning Letters Issued Fines Imposed Total 30 520 1484 124 2158 58 648 268 100 1074 36 394 237 85 754 39 362 167 92 660 20022003 20032004 91,841 757 139 256 2 11 319 119 846 633 63 225 2 8 241 94 633 20042005

82,464 93,320 2,192 97 382 10 07 307 1,389 2,192 1,167 154 434 07 18 365 189 1167

The quality parameters of Petrol & Diesel Petrol marketed in the country should meet specifications as prescribed in IS : 2796 1995 and Diesel marketed should meet specifications of Diesel as required under IS : 1460 : 1995, as amended from time to time, respectively. It is mandatory on the part of the Oil Companies as well as their Reseller network to sell Petrol and Diesel meeting the above specifications in line with the Motor Spirit and High Speed Diesel (Regulation of Supply and Distribution and Prevention of Malpractices) Order, 1998. In the earlier control order apart from stock verification checks, density check was the only test available to detect adulteration . However due to the advent and easy availability of various adulterants like Kerosene under Parallel marketing Scheme (PMS), Naphtha, Solvents, etc., adulteration of which could

not be detected using Density test alone, specifications of Petrol and Diesel were made part of the above Order. Certain critical parameters, apart from distillation test, like Octane number rating for Petrol and Cetane Index test for Diesel were also provided for in the specifications. The new changes in definition of Petrol and Diesel were expected to act as deterrent- against adulteration. Steps taken to prevent diversion of PDS SKO for unauthorized used in adulteration A pilot project covering 10% of blocks in the country has recently been approved by the Government for strengthening the distribution network for PDS kerosene with a view to ensuring that this product is made available to the targeted consumers and is not diverted for adulteration. The Scheme proposes setting up wholesale storage facilities at block level, with storage tanks and calibrated dispensing units; creation of 5-10 sub-wholesale points within the block to facilitate deliveries to retail outlets; and involving Panchayati Raj Institutions in monitoring the implementation of the scheme. OMCs have been advised to select 625 blocks in consultation with the State Governments to start one Pilot Scheme. So for 512 blocks have been selected. The scheme is to be operationalised by October 02, 2005. Based on the experience gained and after evaluating the pilot scheme for six months scaling up the scheme to cover the whole country would be considered later. In addition, Government have commissioned the national Council of Applied Economic Research (NCAER) conduct a study to ascertain the actual demand for kerosene in different states in the country. Further necessary action in deciding state-wise allocations of PDS kerosene could be taken after receiving this study report.

It was less than a year back on November 19th, Manjunath Shanmugam, an IIM graduate gave his life to the country while trying to expose the corruption in petroleum marketing. For a month or so, his heroic efforts to expose corruption caught the attention of the nation. During the same time the nation remembered the sacrifice of Satyendranath Dubey, an IIT graduate. Dubey was murdered two years earlier for a similar noble cause of exposing corruption in highway construction. The nation applauded their heroic deeds though there were some cynics who wondered about their nave attempts to fight corruption. Fighting corruption in petroleum sector was put on the national agenda only for few days. It was ironical that within few days of the murder

of Manjunath the corruption charges against Satish Sharma the new avatar of petroleum corruption were dropped. It was not because there was not enough proof. It was just that the ministry did not want to press charges! Is this the way to honor the memory of an idealist like Manjunath? The political class which is the beneficiaries of the highly subsidized kerosene does not like to change the system. However the murder of Manjunath changed that. At least that is what some of use diehard optimists thought. First our Prime Minister Man Mohan Singh assured the nation that he would ask the petroleum ministry to streamline the pricing system to reduce incentives to defraud. It was followed by a solemn assurance by the then Petroleum Minister Mani Shankar Iyer. Every one believed that as a result of supreme sacrifice of Manjunath, pricing anomaly of selling kerosene at highly subsidized prices will be removed finally. Time has proven us wrong. It has only worsened. The difference between kerosene price and competitive products of petrol and diesel has only widened over the year and so also the adulteration. Last July, there was a national level seminar on curbing oil adulteration. Petroleum Minister Murali Deora took part in that seminar. I made a detailed presentation during the seminar quantifying the level of corruption in petroleum sector. I estimated it to be more than Rs. 40000 crores per year. My presentation was dedicated to the memory of Manjunath, a gesture which was well received. But the same participants failed to connect the corruption that I was discussing with the reason for Manjunaths murder. I was pleading with the minister that there are better foolproof ways of helping the poor with supplying kerosene. But the minister was adamant that he would not touch kerosene price. I challenged him by stating that any thing else he does will not solve the root cause of corruption for which Manjunath had sacrificed his life. Not one news paper carried this news item. Are we waiting for some more sacrifices from upright officers like Manjunath?

Every one knows the real beneficiaries of kerosene subsidies. It is the political class. Umpteen reports have proven the fact that poor are not the beneficiaries. But no political party dare question the petroleum pricing system since it is their members and financiers who are minting money to the extent of Rs. 40000 crores per year. It is that rotten system Manjunath had the idealism and courage to challenge. If we want to show our appreciation for the noble deed of Manjunath, as his death anniversary nears we as a nation need to do far more than what we have done so far. His sacrifice will not amount to much unless we uphold the principles for which he gave his life. His last alma mater IIM Lucknow, his employer Indian Oil Company, and SJCE at Mysore where he spent his formative years getting his engineering degree have tried in their own ways to pay respects to his memory. The trust started in his name has been able to collect less than 50% of its target of Rs. 50 lakhs. It is not clear why the trust has to pay the bills of lawyers fighting the case on behalf of Manjnaths family. His employer IOC should take up the legal and moral responsibility of punishing the guilty. The case is moving at snails speed despite it being an open and shut case. IOC has instituted an award in the name of Manjunath for honoring the best quality team. What an irony! It should have fought in the first place to remove the pricing anomaly. There is no one to champion such a dramatic reform. A web based petition drive demanding for a full inquiry and justice in the murder of Manjuanth has just got a total signature of 14200 till the first week of Oct, 2006. Many who signed have suggested that to honor Manjunath in real sense of the word, we need to get rid of the current rotten pricing system. Otherwise his sacrifice would have been in vain. As the death anniversary nears, the government should seriously consider implementing recommendations made by the planning commission to streamline the pricing and remove all incentives to adulterate

petroleum products. They should also get rid of multi tier pricing of LPG (LPG is sold at three different prices in residential, commercial and automotive markets). LPG marketing is another activity where corruption is rampant. The only lasting way we can honor Manjunath is to start the process of unwinding kerosene subsidies and reduce corruption.