Oil ministry to reintroduce marker to check kerosene diversion

Oil minister S Jaipal Reddy yesterday, said his ministry would, within six months re-introduce chemical marker to check diversion of subsidised kerosene for adulteration of diesel, and ask governments in states to equip tankers used by civil supplies department, with satellite tracking systems.

He said the centre was not in a position to crack down on the mafia on its own, as the matter fell within the domain of state civil supplies and public distribution departments.

However, according to oil company executives, tracking systems on kerosene tankers would not help in prevention of diversion. They say the price advantage with kerosene from the subsidy on the fuel leads to diversion which can be checked with pricing reforms.

Ruling out any hike in kerosene price as it would be  "politically difficult" he said he agreed with those who ask for kerosene and diesel deregulation as a theory. He added however that they needed to consider whether it was practical.
He said what was practical was marker and tracking systems.

According to petroleum secretary S Sundareshan it was  difficult to tamper with petrol or diesel during transit because of increasing automation and deployment of online data monitoring systems, satellite tracking systems and specialised locks on tankers.

"I can tell you there is no adulteration in diesel or petrol till the point of retail outlets ... except in stray cases," he said.
According to Reddy only 59 cases of adulteration had been reported last year in a market, which boasts about 39,000 petrol pumps.