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18th August 2020:Nagpur: Vidarbha Petroleum Dealers Association (VPDA) has alleged that a number of outlets licensed to vend bio-diesel have been selling spurious fuel instead.
The government had allowed direct sale of bio-diesel for mixing with high speed diesel (HSD) from April 2019. This has led to a number of dealers selling fuel oil in the name of bio-diesel. Bio-diesel is a product made of agricultural and other non-petroleum products; while fuel oil is a refinery product used for running boats and small fishing vessels, apart from other industrial uses, said Amit Gupta of VPDA.
This was pointed out to speaker of state assembly Nana Patole, following which a raid was conducted on a pump at Nagpur, which was later sealed. VPDA will be taking up the issue further with other authorities, Gupta said.
The campaign by VPDA is on the lines of a statewide drive by Federation of All Maharashtra Petroleum Dealers’ Association (FAMPEDA), he said. “The government has allowed blending up to 20% of bio-diesel. However, the actual production of bio-diesel is not as much as the sales taking place these days,” added Vilas Salpekar, also a VPDA member.
On the other hand, import of fuel oil has increased phenomenally, which indicates it is being used for illegal mixing. In 2018-19, fuel oil worth Rs4,044 crore was imported. In 2019-20, this jumped to more than Rs11,000 crore, added Gupta.
The mixing has also affected the regular petroleum vendors’ business. Blended diesel is available for Rs55 to 56 a litre, because fuel oil is cheap. Regular diesel on the other hand is priced at over Rs78 a litre. This has led to business coming down by at least 30%, he said.
“We are not against bio-diesel but rampant mixing going on in the name of the green fuel. Bio-diesel costs Rs60 to 62 a litre,” said Gupta. There are over 450 registered bio-diesel vendors in the state out of which five are in Nagpur. The vendors are not part of the petroleum dealers’ association.