Karnataka Cracks Down on Petrol Pump Fuel Fraud; Inspections Find Measurement Irregularities at Hundreds of Outlets

Karnataka government has announced stricter measures to address fuel measurement irregularities at petrol pumps following a large-scale inspection drive. Food and Civil Supplies Minister Rizwan Arshad has instructed officials to conduct surprise inspections and to take any loss on fuel flow to protect consumers from fuel dispensing at the wrong price.

Food and Civil Supplies Minister Rizwan Arshad | Photo Credit: https://x.com/ArshadRizwan
Food and Civil Supplies Minister Rizwan Arshad | Photo Credit: https://x.com/ArshadRizwan

In keeping with the growing concern about the alleged under-delivery of fuel and to build more consumer confidence in fuel retail outlets, the minister said that the measurement of fuel quantities should be verified on-site and the customer can take complaint with the department.

According to the minister, investigators conducted inspections at 805 petrol pumps in the first phase of a statewide drive. The inspections form part of a wider investigation of fuel dispensing systems and alignment with measurement standards, the minister said.

Many outlets were found to have a lot of discrepancies in fuel measurement during the inspections, he said. Some petrol pumps, he said, did not meet the standards for oil dispensing. The government has now expanded inspections and is looking into fuel retail operations across Karnataka.

The inspection included fuel dispensing units, also called fuel guns. Of 3,071 dispensing units, officials found measurement issues in 2,618. The government said these results can help to motivate more frequent monitoring and the enforcement of calibration and measurement standards. Routine inspections and corrective action, they say, can lead to fewer irregularities and the end product that customers pay for. The department has also emphasised the need to report any problem in inspections or customer verification exercises.

For the new guidelines, petrol pump operators are told to comply with requirements from customers. Consumers who suspect inaccurate fuel dispensing should be given the chance to check the quantity provided through approved testing methods available at fuel stations.

The government has said that protecting consumer rights is the top priority and even minor variations in fuel quantity can collectively result in significant losses for motorists. All petrol pumps are to be maintained as per the guidelines, and corrective measures should be taken where deficiencies are found, the government told.

Rizwan Arshad has also warned that strict action will be taken against outlets that are not complying with measurement regulations. Enforcement measures could be legal proceedings and, in some cases, cancellation of licences. No preferential treatment will be given to operators who are found to be doing things that harm consumers, the minister said.

Enforcement teams have been instructed to carry out inspections without any prior notice and to take action where evidence of non-compliance is found in the course of their investigation. They think that stronger enforcement will deter crime and increase compliance with measurement standards, officials say.

The minister also said he was troubled by some calibration-related policy changes made at the national level. He also expressed concern over the calibration cycle for fuel dispensing equipment, which used to be tested annually at the time, but was later changed to a two-year cycle. He said he was also concerned regarding the fact that some calibration activities are carried out by private companies.

Some of the changes may have led to delays in identifying measurement problems at some outlets, Karnataka officials said. The state government will continue to conduct a regular inspection campaign, strengthen supervision and ensure that the fuel quantities of the fuel dispensing equipment are correct and the customer's interests are protected in Karnataka.