상품DB/인도 가짜 석유 판별키트 시장동향(2014.3)/뉴델리 무역관 Mr. Saurav Deb(saurav@ktcdelhi.net)

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제목	인도 가짜 석유 판별키트 시장동향(2014.3)
게시일	2016-02-23	국가	인도	작성자	김주선(뉴델리무역관)
품목	그 밖의 기기
품목코드	902780
작성일자: 2014.3.3 작성자: 뉴델리 무역관 Mr. Saurav Deb(saurav@ktcdelhi.net) 1. INTRODUCTION  ○ Gasoline(Motor Spirit/MS) and Diesel(High Speed Diesel/HSD) are the major transport fuels in India. Adulteration of these transport fuels at the point of sale and during transportation has become an acute problem in the country. Transport fuels are often adulterated with other cheaper products or byproduct or waste hydrocarbon stream for monetary gains. For example, gasoline(petrol) is believed to be widely adulterated with naphtha, natural gas liquids, kerosene, waste solvents, byproduct petroleum stream, etc. With large number of adulterants available in the market, both indigenous and imported, the magnitude of the problem of fuel adulteration has grown into alarming proportions in the past few years.  ○ The Motor Spirit and High Speed Diesel(Regulation of Supply and Distribution and Prevention of Malpractices) Order, 1998, defines adulteration as the introduction of a foreign substance into motor spirit / high speed diesel, illegally or unauthorized with the result that the product does not conform to the requirements and specifications of the product. The foreign substances are called adulterants which when introduced alter and degrade the quality of the base transport fuels.  ○ Prior to 2002-2003 adulteration in Petroleum was a big issue in India. However, off late due to law and order efficiency the problem has been much restricted.  ○ Skyrocketing fuel prices is not the only worry that the consumers of India are buoyed down with. The issue of the purity of fuel products, even after paying a steep price for them, is a big cause for concern. Indeed, adulteration of petrol and diesel in fuel bunkers is a flourishing market. This long standing malpractice has plagued the Indian market and the transportation and use of adulterated fuel with close substitutes are rampant.  ○ Kerosene is the most common adulterant used in India for petrol and diesel. Kerosene is heavily subsidized by the government as a large part of the population depends on this petroleum product to meet its day to day fuel needs. Back in 2001 only kerosene would receive subsidy from the government, which was worth around 7500 Crores, for public distribution. Naturally, mixing this ‘poor man’s fuel’, as kerosene is often referred to, with costly petrol and diesel represents huge financial gains for fuel bunkers. Following the recent deregulation of petrol and the spiraling costs as a result of this, it has become common practice to mix petrol with diesel, which still gets government subsidy, with diesel being replaced with kerosene. Another product widely used in the adulteration of gasoline in fuel bunkers is naphtha. In India this product is imported in large quantities and then often used for the purpose of adulteration. Raids in different parts of India have revealed this widespread corrupt tendency. In 2004 according to a report by Hindu around fifty percent of petrol pumps along the National Highway in Chennai were selling adulterated petroleum products. This trend has not changed even in 2011 and in January, investigations in the town of Manmad opened a can of worms of pilfered oil in Maharashtra.  ○ This problem has not only raised concerns for consumers but also for the treasury of the government and oil companies. In addition, these adulterated products cause irreparable damage to the environment by significantly adding to the pollution meter. The damage caused to the engine of the car is another area of concern for both, car owners and car manufacturers. This issue needs be addressed soon especially considering how India is seen as a major strategic market by the automobile industry.  ○ To curb this growing malpractice, a number of initiatives have been undertaken. Regular raids are conducted by government agencies to keep an eye on these activities and also to send a clear message to petrol pump owners. Recently, public sector oil companies have urged for a re-introduction of the Authentix marker system which is considered to be an effective way of checking the adulteration of petrol and diesel. Apart from that, it is important to keep an eye on the quality of fuel at the points of distribution itself. Customer awareness on the issue is crucial. They must insist that the oil be tested and should also look at the density of the quantity in order to curb the abuses of contaminated oil.  ○ Adulteration in the motor fuels(Petrol & Diesel) has been a menace for Ministry of Petroleum & Natural Gas(MOP & NG) since a very long time, precisely due to artificially keeping low price of Kerosene.  ○ Price of PDS(Public Distribution System) Rs. 13/ltr kerosene has not been revised for more than a decade to keep the vote bank of BPL users intact by respective governments, such artificially low price has made adulteration of motor fuels like Petrol/diesel with this PDS Kerosene a lucrative trade.  ○ Late Manjunath Sales officer of Indian oil was shot dead in 2005 November while checking adulteration at a Petrol pump in Lakhimpur kheri U.P, In a more recent incident SDM Malegaon Sh Sonawane was burnt alive while taking on Adulteration Mafia in Malegaon close to Nasik Maharashtra.  ○ Government had tried several methods to curb it, and introduced colored(blue dyed) PDS kerosene in mid-eighties. Anti adulteration drives were carried out but adulteration kept flourishing due to the differential between kerosene price and rising price of Motor fuels. By a study of NCEAR it was established that 38% of Kerosene is diverted and used for adulteration by Petrol/diesel pump owners with the support of transporters, oil company officials .Money thus generated is channeled up to Oil company Top officials for buying creamy posts. It is noteworthy that 70% of the Petrol bunks, gas agencies are owned by Politicians either in their Name or Benami(Benami is a Persian language word that means "without name" or "no name". In this Act, the word is used to define a transaction in which the real beneficiary is not the one in whose name the property is purchased. As a result, the person in whose name the property is purchased is just a mask of the real beneficiary).  ○ MOP & NG(Ministry of Petroleum & Natural Gas) formed a committee of top oil company officials in 2005 and sent them abroad to study and suggest a suitable ‘Marker’, which can detect adulteration in motor fuels, such ‘markers’ are used in south Africa, Malaysia and many other countries to check adulteration due to differential pricing or subsidized fuel etc. Committee finally zeroed down on few suppliers of markers, out of which M/s Authentix was handpicked by then ministry officials for supplying marker to oil marketing companies(OMCs) i.e IOC/BPC/HPC , such decision was taken without even conducting a Pilot study. Oil companies were advised outright to procure the marker from Indian agents of M/s Authentix M/s SGS Ltd on a single offer basis in July 2006 . There was such a tearing hurry to implement marker system that no formulation, specification, chemical composition or Environment impact was studied /verified or compared. 2. STATUS OF FUEL ADULTERATION IN INDIA  ○ Adulteration of transport fuels at the point of sale and during transportation has become a routine problem in India. There are several petroleum products available in our country, which are close substitute of gasoline and diesel, but are available at considerable lower prices. The price differential is usually in the range of Rs. 35 to 40 in case of petrol and Rs. 15 to 17 in case of diesel. Since kerosene is usually considered as poor man's fuel, Govt. of India has been subsidizing it for public distribution for several years. It is common knowledge that significant portion of this subsidized kerosene is being diverted for adulterating gasoline. Several studies/survey carried out recently have together pointed out alarming rise in the cases of fuel adulteration in our country and some of them are as below.   - Tata Consultancy has conducted an extensive survey on the kerosene distribution pattern within the country. They arrived at the conclusion that more than 30% of Kerosene distribution intended for household consumption through PDS outlets flowed back to industry in one form or the other. This was a clear indication towards the flourishing business of adulteration in our country.   - According to Anti Adulteration Cell of India, Naphtha is a commonly used adulterant for gasoline. The modus operandi is to import the product in huge quantity and divert it for adulteration. In a major seizure the Cell detected import of naphtha through the Mangalore port allegedly for adulteration of auto fuels in Kerala, Andhra Pradesh, Karnataka, W. Bengal and M.P. The intention was to import and move the products to a factory in Pondicherry, where it got blended with other adulterant chemicals. Following the investigation, the Cell sealed 82 kL of naphtha, 31 kL of other products along with plant and machinery allegedly used for adulteration.   - Similarly a case of adulteration has also been reported from Uttar Pradesh in the city of Meerut, where an authorized transport company was caught with adulterated stock. This transport agency had the authority to transport both petrol & diesel to retail outlets and solvents for industrial use. The agency was supposedly using its workplace for adulterating diesel with kerosene.   - According to the news in "The Times of India", the State Government of Maharashtra loses a whopping Rs. 81 lakh and Rs. 75.6 lakh every month on account of combined sales & excise tax revenue against petrol and diesel adulteration in Mumbai city alone. This is believed to be 10 percent of the genuine sale, industry source reveal.   - Various estimates have been made of the extent of financial loss to the national exchequer as well as the oil companies as a result of diversion of PDS kerosene, use of off-spec, low value, hydrocarbons mixed with petrol and diesel, evasion of sales tax etc. Although these estimates vary over a wide range, it is safe to assume that the nation is losing at least Rs. 10,000 crores annually as a result of adulteration of fuel. If too this is added the social costs as a result of environmental pollution, damage to vehicles and other engines, etc., the loss could be substantially higher.   - With the plethora of foreign car manufacturers making a beeline to set up manufacturing facilities in the country, their first and immediate concern is the quality of petrol that gets supplied to the users' cars. They have uniformly found that supplies are heavily adulterated and particularly the Octane content is much lower than the specification value of 87%.   - Recently under the direction of the Supreme Court, Environment Pollution Control Authority(E PCA) through a local NGO(CSE) carried out tests of fuel samples from retails outlets and other points. The results of the study reveal 8.3% sample failure of the sample tested against 1-2 percent reported by oil companies in the past. The study further reveals that adulterated fuel in intelligent mix allowed retail outlets to reap a huge profit of more than Rs 25, 000 a day18. 3. WAYS OF DISTRIBUTING ADULTERATED FUEL  ○ Fuel can be adulterated in many places:   - At the Source Refinery itself   - Parallel Markets – Grey Market   - Gangs in collusion with tanker drivers mixing kerosene with petrol and diesel 4. TYPES OF FUEL ADULTERATION – WAYS OF COMBINING FAKE PETROLEUM   - Blending of lubricants into kerosene as a substitute for diesel   - Blending of kerosene into petrol   - Blending of kerosene into diesel   - Blending of used lubricants into diesel  ○ Codes, standards or specifications for the gasoline and diesel have been laid down in different countries. National or other legally enforceable specifications represent the minimum quality that must be supplied and it is implicit that engine designers should ensure that their vehicles will run satisfactorily on such a quality of fuel. In India, the Bureau of Indian Standards(BIS) notifies the requisite specifications for petrol and diesel.  ○ Annexure I & II show BIS specifications for diesel and gasoline that are being implemented all over the country except in four metros, while in four metro cities Bharat stage-II fuel specifications are implemented.  ○ Blending or mixing of adulterants into the base transport fuels exists in various forms and both the type and quantity of adulterants vary from place to place. Moreover, profitability, availability and blendability are the prominent factors governing the choice of adulterants. Annexure I: BIS diesel specifications(IS 1460: 2000) Annexure-II: BIS petrol specifications(IS 2796: 2000) 5. APPROACH FOR ADULTERATION DETECTION □ A number of analytical techniques are available to detect adulteration. In all cases described below, it is important to have good sampling technique and access to a good petroleum analytical laboratory. For the majority of the tests, accurate data and analysis of original or uncontaminated fuel are also pre-requisite. □ Some of the approaches for detecting adulteration are outlined below  ○ Full specification tests of the standards   - This may be quite time consuming and many parameters may be well within the requirements even if the fuel is adulterated. In fact fuel standards or specifications are framed to ensure that the fuel corresponds to certain level of quality commensurate to technology requirements of the vehicles. Parameters in the fuel standards may not necessarily stand as checkpoint for any sort of fuel adulteration.  ○ Testing selected parameters   - This asks for testing some critical parameters, which are likely to be affected or altered by adulteration and adversely affect engine performance and emissions and can be eval‎uated. In general, many of the selected parameters may already be included in the full specification standards. However, dosage of multifunctional additive and cetane improver are intended for following the adulterants by dilution.   - However, convenient methodology for determination at refinery and outlet levels are yet to be lined up in the country.    · Density    · Distillation    · Hydrocarbon Composition    · Aromatic, Vol. %    · Olefins, Vol. %    · Benzene, Vol. %    · Sulphur, ppm    · Stability    · Existing gum    · Potential gum    · Octane Number    · Research    · Motor    · Multifunctional additives-dosage  ○ Selected Parameters for Diesel Testing   - Flash Point   - Density   - Distillation   - Sulphur   - Polycyclic aromatics(+2 rings)   - Total sediment   - Cetane number   - Cetane index   - Multifunctional additives-dosage   - Cetaneimprover-presence,   - dosage: For diesel fuel without cetane improver, cetane index can be utilized. If dosage can be determined, it may be used for detection of adulteration based on depletion from original dosage.  ○ Testing methods:   - There can be several alternate approaches, some prominent approaches are:    · Use of conventional manual petroleum testing methods.    · Utilization of automated instruments for conventional petroleum testing. For example- gas chromatographic method is used for simulated distillation. A number of instrumental analysis methods have been developed for establishment of parameters of fuels.  ○ Emerging instruments for fuel surveillance:   - Several new instruments are available which claimed to carry out instrumental analysis for the estimation of key parameters of transport fuel. For example the following may be noted.    · Accurate and comprehensive fuel analyzer. The portable FOxFTIR fuel analyzer is claimed to be ideal for the analysis of commercial fuels.    · ZeltexZX101CC Portable Octane analyzer.  ○ Use of marker:   - Various markers can be used to identify adulteration, such as kerosene in gasoline. Earlier kerosene was used as major adulterant for adulteration in gasoline and diesel fuel. For detection of adulteration of fuels with kerosene a blue dye and furfural were used. However, where visible dyes have been applied in South Asia, they have not been effective. It is believed that presently the range of adulterants has widened. Various chemical/biochemical markers are available in market e.g. Spectrace marker by Mortan international, petro markers by M/S GFI, Biocode markers by M/S Biocode ltd., etc. The marker is added in trace level with the fuel and whenever the product is to be tested, the marked chemical is detected and measured by specific instruments/ immunoassay. This detection test can also be easily carried out in field with equal accuracy as laboratory tests. 6. Properties of Markers   - They should be miscible with fuels   - Detectable by simple test procedures   - Difficult to remove from marked fuels   - Non-reactive with other fuel additives   - No interaction with material of construction and fuel impurities; and   - Should be cost effective 7. Limitations of Marker System   - Relatively a high cost option   - Difficult to maintain a constant dosage at low concentration   - May be leached out by water in the product tanks» May interact with materials and fuel impurities □ Key Issues Related to Adulteration Detection  ○ There are several issues related to detection of fuel adulteration. A very sound system of fuel quality monitoring and surveillance is a pre-requisite to launch an adulteration detection program. Institutions involved in the program should have access to state of the art fuel testing laboratories and sample storage and handling facilities. Some of the key issues are described below:   - Monitoring the quality and frequency:    · To check adulteration a system of monitoring is suggested whereby fuel samples will be collected from at least 10 % of the fuel dispensing stations in a week. In this way all fuel stations will be covered in a period of three months. At one time three samples will be collected and sealed jointly by collecting and dispensing station.   - Agency for collection of samples and co-ordination:    · Since consumer interest is the prime objective of the quality surveillance program, consumer representatives groups should be involved in the process. The following organizations should be explored to take up the sample collection and surveillance activity.    · Society of Automobile Manufacturers(SIAM)    · Consumer forum    · NGOs interested in the field    · Representative from the local Transport Authority    · Civil Supplies Department    · Bureau of Standards; and    · Pollution Control Boards/Agencies    · Moreover any quality conscious consumer may collect and get the fuel samples tested for quality assurance as and when he desires.   - Testing laboratories:    · In different cities the following possibilities should be explored    · Independent Government funded test laboratory to be managed under a society.- Government test laboratory- Private existing laboratory to be reinforced.- Private new laboratory- New laboratory to be set up in academic institute premises for the purpose.    · There should be system of accreditation, periodic checking of quality for analysis by round -robin test and also withdrawing accreditation in case of consistent out-off-line performance in round -robin tests.   - Sample collection, handling and storage:    · The different aspects of sample collection, handling and storage including type of sample collector, need for inert gas blanketing etc. may be investigated and prescribed in a standard to improve the reliability of the monitoring process.   - Product data sheet:    · To facilitate subsequent analysis it is suggested that a product is also accompanied by a data sheet of analysis as it leaves the refinery or marketing installation in particular the item of short test based on tests on the dispatched product.   - Handling failure samples:    · In case of first failure, after identifying the source of contamination the controlling officer of the oil companies will take appropriate action for the group responsible for adulteration. The penalized person will have the possibility to appeal to the supervisor of the controlling officer in first case. The supervisor may review the case and dispose of the appeal keeping the samples collecting authority informed. Similarly an appealing point is to be conceived for repeated failure cases. However, the present practice of penalizing the dealer and Oil Company being the judge is not yielding the desired results. Other practices include the practice in line with that of Australia, wherever the outlet belongs to a company, the quality aspects of that outlet is the sole responsibility of the parent oil company supplying the product and in case of any failure the company is penalized.   - Disposal of spent sample:    · If it is a pass sample it can be sent back to the pump through the Oil Company. The failed sample will be collected and returned to oil companies.   - Funding the cost of fuel quality surveillance:    · Charging a small tax either at the dispensing outlet or at the refinery outlet can cover the cost of fuel quality surveillance.   - Annual market product quality survey:    · Analogous to Octel, Ethyl and Parammins worldwide survey of fuel qualities transport fuel quality survey for summer and winter periods, covering at least 50 samples collected all over the country should be carried out. □ SOME IMPORTANT MEASURES TO CONTROL FUEL ADULTERATION  ○ Some important measures to control fuel adulteration are listed below:   - An important step in tackling fuel adulteration is reducing incentives and opportunities for adulteration. Though it is generally recognized that eliminating pricing differential is the most effective method of controlling adulteration, it will be difficult to eliminate differences among such a wide variety of fuels and solvents meant for different usages.   - Checking adulteration requires a credible monitoring and surveillance system. To ensure that the engine can give the desired performance including low emissions, it is necessary to ensure the fuel quality at the consumer end, which can be achieved by appropriate surveillance programs.   - Any anti-adulteration programme should be backed up by sound financial and legal framework. The fiscal framework should take into account-associated costs like monitoring & testing infrastructure. Policy for imposing severe penalty & exemplary punishment to the adulterators needs to be imbibed into legal framework to discourage adulteration.   - The manner in which retail fuels are distributed has an important bearing on fuel adulteration. For example, having large numbers of small, independent transport trucks operators moving fuels from terminals to the point of sale creates an environment conducive to adulteration. One effective "market based" approach is the practice in many industrialized countries whereby oil companies market at retail and assume responsibility throughout the supply chain to guarantee fuel quality in order to protect their public image and market share.   - One of the acceptable internationally accepted methods for detecting and thereby preventing adulteration of fuels is the use of markers. A number of chemical and biochemical markers are available in the international market. Some of them are dyes, one of which is already being used in India to mark SKO(Superior Kerosene Oil) used for PDS(Public Distribution System).   - The Standard fuel test method being used today when properly executed should be able to give acceptable results. Precision and repeatability could be improved by setting up programmes for cross checking inter-laboratory variability.   - In Industrial countries, practices of adulteration are expected to be less or rare today; in part because public pressure has led most oil companies to take public image seriously and socially responsible behavior is considered as integral part of good business. Thus a culture of "Good Business" needs to be developed within the concerned industry to eradicate adulteration via awareness raising by Government organizations, NGOs, and citizens groups; independent checks by universities and research institutes to "name & shame" those who are not in compliance; efforts by trade associations to identify those retailers that comply in order to "upgrade" the market; international pressure on large oil companies operating in developing countries; and greater effort by governments to monitor and enforce regulations.   - Use of alternative fuels which are less prone to adulteration, can play a positive role in minimizing adulteration. Thus, promoting use of cleaner fuels like CNG, LPG etc. can prove effective in dealing with adulteration.   - Taking & maintaining samples for checking fuel quality is not easy. Finding proper sample containers and not being personally harassed at retail outlets while sampling are just two of the very real operational problems to be resolved □ CONSUMERS FRONT: ANTI-ADULTERATION MEASURES  ○ Consumers are the sufferers of this malpractice. Any quality conscious consumer has the right to be assured of the quality of the products and if he desires he can get his sample checked for adulteration. Some easy and important checks can be conducted at the retail outlet for MS/HSD: -   - Filter Paper Test: For MS. First the mouth of nozzle is cleaned to remove stains. Then, a drop of petrol is put on the filter paper from the nozzle. The petrol dropped on the filter paper is allowed to evaporate for 2 minutes. The petrol should evaporate without leaving any stain on the filter paper. If the colour left on the paper is pinkish, it is the colour of MS and not a stain. Dealers are expected to provide filter paper to customers on demand.   - Density test: This is a very simple test for both MS and HSD. This test takes approximately 5 to 10 minutes. Product is taken in a glass jar and then a Hydrometer(separate Hydrometers for MS and HSD) available with the dealer is immersed in the product. A Thermometer is also immersed into the product jar simultaneously without touching the walls of the jar. The readings of Thermometer and Hydrometer are taken. Then, with the help of a conversion chart, the density is converted to 150C and this is compared with the recorded density/reference density, which can be seen from the density register maintained by the dealer. If the variation between the observed density and recorded/ reference density is within + 0.0030, then the product density can be considered to be correct. If the difference is more than + 0.0030, then it indicates possibility of adulteration.   - Water contamination checks: For both MS and HSD can be done with the help of a dip rod and water finding paste, available with the dealer.   - In case of lubricants: the customer must check the seal of container, date of manufacture and name of the manufacturer. For convenience of 2/3 wheelers, Retail Outlets provide 2-T dispensers/2-T mix dispensing units and also keep tamper proof 2-T pouches 8. NATIONAL AWARENESS, PREVENTION ON FAKE PETROLEUM IN COUNTRY □ INDIAN INITIATIVES TO CONTROL FUEL ADULTERATION  ○ As per the Ministry of Petroleum & Natural Gas(MoPNG) following Steps have been undertaken to control Adulteration of Fuel in the country:   - 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 Test,    · Furfural doping of PDS Kerosene,    · Density checks,    · Blue dyeing of kerosene,    · Regular/surprise Inspection of retail outlets,    · Joint inspection of retail outlets by the industry teams,    · Regular /surprise inspection by mobile laboratories,    · Special vigilance drives, etc.   - 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 of the month    · 25% during next week, and    · Balance 15% during the following week.   - 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 pattern mentioned above.    · To identify loopholes in the distribution 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.   - 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.   - 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.   - MoPNG has also amended the kerosene control order making it mandatory for the parallel marketers to file end use certificate from their industrial customers.   - 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.   - 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.   - 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.   - Following methods are practiced for checking kerosene adulteration in MS:    · Filter paper test    · ASTM Distillation    · 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.   - 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. □ 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: -    · Prevention of adulteration and other malpractices in the sale of petroleum products.    · To conduct inquiries into complaints against Dealer Selection Boards.    · To act as a coordinating agency for oil companies and Central/State Governments departments in the matters related to adulteration of fuel. □ 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 anti-adulteration 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. 9. TRANSPORT FUEL TAXES & FUEL PRICING MECHANISM IN INDIA  ○ Tax rates on automotive fuels vary markedly from country to country, ranging from heavy subsidies for all fuels in Nigeria and Iran to high taxes in Europe. Most developing countries tax gasoline - considered consumption good of the rich- more heavily than diesel or kerosene, a consumption good of the poor. Many countries realizing the problems of air pollution and the need for infrastructure developments generate funds by levying higher tax on automobile fuels. □ Objectives of Fuel Taxes  ○ Taxes on transport fuels typically seek to satisfy multiple objectives including the following:   - Raising government revenue for general(non-transport) expenditure purposes.   - Efficiently allocating resources to and within the transport sector.   - Financing road infrastructure and maintenance.   - Reducing encroachments, congestions and environmental externalities of road transport.   - Redistributing income and meeting related expenses.  ○ It is not possible to achieve all these objectives simultaneously through fuel tax policies alone. Most governments complement fuel taxation with other policy instruments - in particular to correct the externalities. In determining the levels and structure of fuel taxation, important compromises have to be made for the effects on government revenue generation, income distribution, the efficient use of roads and environmental pollution. In so doing, the attention must be accorded to the relative importance of each objective. □ Problems of Differential Fuel Taxes  ○ The problem with differential fuel taxation concerns the effects of inter-fuel substitution. The effect of differential taxation on consumption of non-transport fuels further complicates the matter. Imposing very different tax rates on close substitutes, and subsidizing certain fuels used by poor households, invites diversion of low priced fuel to other sectors and creates an incentive for fuel adulteration. For example, the diversion of rationed, low priced kerosene to transport uses(as an adulterant in diesel and gasoline) reduces the amount of kerosene available for the poor, who need it for lightening and cooking. The shortage of kerosene in turn leads to externalities as, the poor are forced to turn to bio-mass a significant source of indoor air pollution and health damage from cooking. 10. Fuel Pricing Mechanism in India  ○ India has traditionally operated under an administered pricing mechanism(APM) for petroleum products. This system was based on the retention price concept under which the refineries, oil marketing companies and pipelines were compensated for operating cost and assured return of 12 % post tax on net worth. Under this concept, fixed level of profitability for oil companies was ensured subject to their achieving specified capacity utilization. Upstream companies namely ONGC, OIL and GAIL were also till recently under Retention Price concept and were assured fixed return. The administered pricing policy of petroleum product ensured that products like kerosene, used by the vulnerable sections of the society or product used by the transport sector and the agriculturist may be sold at prices that are insulated from volatility in the international oil market. The Govt. of India, Ministry of Petroleum and Natural Gas in 1995 appointed a Strategic Planning Group for making recommendations to meet the policy objectives and initiatives required for restructuring the oil industry. Based on recommendations of the Group, the Government of India had in November 1997 notified the detail phased out program of dismantling the APM. The notification provides that the prices of petroleum products, except for PDS kerosene and domestic LPG will be market determined with effect from 1st April 2002. Dismantling of APM is triggering competition among oil refineries, while also providing product with reasonable cost and upgraded quality. 11. KIND OF ADDITIVES - COMMON FORMS OF FUEL ADULTERATION & POTENTIAL ADULTERANTS  ○ Blending or mixing of adulterants into the base transport fuels exists in various forms and both the type and quantity of adulterants vary from place to place. Moreover, profitability, availability and blendability are the prominent factors governing the choice of adulterants. Specific types of adulteration may be broadly classified as follows:   - Blending relatively small amount of distillate fuels like diesel or kerosene into automotive gasoline.   - Blending variable amount(as much as 30%) of the gasoline boiling range hydrocarbons such as industrial solvents into automotive gasoline.   - Blending small amounts of spent waste industrial solvent such as used lubricants, which would be costly to dispose of in an environmentally approved manner-into gasoline and diesel.   - Blending kerosene into diesel, often as much as 20-30 percent.   - Blending small amount of heavier fuel oils into diesel.  ○ There are several petroleum products in our country or abroad, which are close substitutes of petrol(Motor Spirit or MS) and high-speed diesel(HSD), and are available at considerably lower prices. The consequence is that these products are widely used as adulterants. Some of the possible adulterants available in Indian markets are listed in Table-1 & 2 Table-1: Potential Adulterants for Gasoline(MS) Table-2: Potential Adulterants for Diesel(HSD) 12. KINDS OF LAMP OIL DISTINGUISHER 13. CONSEQUENCES OF ADULTERATED FUEL  ○ Fuel Adulteration of transport fuel, which is currently a very flourishing business in our country, can lead to economic losses, increased emissions & deterioration of performance and parts of engines using the adulterated fuels.  ○ One conservative estimate is that the country loses more than Rs. 50,000 crores per year just from the adulteration loss, not counting the health cost and other indirect loss of efficiency.  ○ Some of the effects of adulteration are outlined below   - Mal-functioning of the engine, failure of components, safety problems etc. The problem gets further magnified for high performance modern engines.   - Increased tailpipe emissions of hydrocarbons(HC), carbon monoxide(CO), oxides of nitrogen(NOx), and particulate matter(PM) can also cause increased emissions of air toxin substances.   - Adulteration of fuel can cause health problems directly in the form of increased tailpipe emissions of harmful and sometimes carcinogenic pollutants. While indirectly in the form of diversion of kerosene to the automobile sector for adulteration, thus prompting the use of biomass as domestic fuel which in turn leads to health problems of various types due to indoor air pollution. It may be noted that all forms of adulteration are not harmful to public health. Some adulterants increase emission of harmful pollutants significantly, whereas others have little or no effect on air quality.   - Significant loss of tax revenue: Various estimates have been made of the extent of financial loss to the national GDP(Gross Domestic Product), as well as the oil companies as a result of diversion of kerosene, which is mixed with petrol and diesel.