Page 62 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

In addition to the already established quality assurance protocols, Oil Marketing Companies have
further strengthened surveillance by conducting water-ingress and density tests 8–12 times daily at
every retail outlet. Mobile fuel quality testing laboratories have also been deployed across locations,
while test results are being independently validated through fuel laboratories to ensure the highest
standards of quality assurance.

These multipronged stepped-up testing protocols across the supply chain have validated our highest
fuel quality standards.

1. MS from Refinery: Actual Chloride levels in Petrol is well within 1 ppm
Over 100 additional randomly selected petrol samples tested across various refineries confirm that
chloride content remains consistently low, with all samples reported at or below the 1 ppm. This
reflects the continued effectiveness of quality checks built into India’s robust refining and dispatch
process.

2. Pure Ethanol ex distillery
Ethanol supplied by distilleries—the principal blending component—has also consistently recorded
chloride levels significantly below the prescribed specification, reflecting robust quality control
mechanisms at the production stage.
A dedicated task force having members of OMCs & CHT has checked ethanol samples from 80
distilleries across the country in last 10 days and all samples had Chloride content less than 3 ppm.

3. Ethanol Blended MS (E20) distributed via OMCs’ Marketing Infrastructure

Depots / Tank Trucks: Ethanol and E20 samples tested at depots and terminals continue to meet
prescribed chloride limits, with regular monitoring at this stage ensuring that quality is maintained as
fuel moves through the storage and distribution network. More than 80 samples across the nation
collected from various OMC terminals showed chloride content below 3 ppm.

Retail Outlets (RO): Under the intensified monitoring programme of more than 1000 samples, so far
160 test reports have been analysed for chloride content in last few days and levels are in range of 0-
3 ppm contrary to the claims of several hundred ppm. The surveillance system identified only four
isolated instances where elevated chloride levels were detected. These were suspended immediately,
followed by detailed root-cause analysis and implementation of appropriate corrective measures
before restoration of supplies.

4. Water ingress testing:
About 90,000 ROs have commenced mandatory inspection and monitoring of underground storage
tanks. The underground tanks at ROs are being inspected 8–12 times every day and have not revealed
any water ingress so far.

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