Fueling Danger: Chandigarh Dealers Expose Illegal Mobile Diesel Sales Threatening Safety and Revenue

A serious red flag has been raised by the Petroleum Dealers Association (PDA) Chandigarh, bringing to light the alarming proliferation of illegal diesel sales via mobile fuel trucks across the city. This practice, operating outside the established regulatory framework, poses not only a grave threat to public safety but also undermines the legitimate petroleum retail sector and causes significant revenue loss to the state.

The Association’s urgent appeal to the UT administration, including the UT Administrator, UT Adviser, and Director General of Police, highlights a particularly egregious incident involving a private company’s "mobile fuel truck" openly dispensing diesel to customers.

Such operations, conducted without proper licenses or adherence to stringent safety protocols, transform a convenience into a potential catastrophe. Storing and distributing highly volatile fuel from a moving vehicle in residential or commercial areas without the necessary precautions is a recipe for disaster, risking explosions, fires, and widespread harm.

According to the Petroleum Act 1934 and the Petroleum Rules 2002, retail sale of petroleum products, including diesel, is strictly confined to licensed retail outlets – the familiar petrol pumps.

While the Petroleum and Explosives Safety Organisation (PESO) did issue a notification in 2019 permitting mobile dispensing of diesel, this approval comes with crucial caveats. It is exclusively for bulk users such as industries, large construction sites, and agricultural enterprises, and explicitly prohibits retail sales to the general public or individual vehicles.

Furthermore, these mobile dispensing units are mandated to be operated solely by Oil Marketing Companies (OMCs) or their authorised dealers, ensuring accountability and adherence to safety standards. The alleged truck, however, appears to be operating as an unregulated retail point, a clear violation of these guidelines.

Beyond the immediate safety hazards, these illicit activities inflict substantial financial damage.

Legitimate petroleum dealers, who invest heavily in infrastructure, licenses, and safety measures, face unfair competition. Moreover, the state exchequer suffers considerable losses due to evasion of Goods and Services Tax (GST) and other levies by these unregulated operators. There’s also the worrying prospect of fuel adulteration, as the absence of oversight makes it easy for unscrupulous elements to compromise fuel quality, potentially damaging vehicle engines and contributing to environmental pollution.

The PDA Chandigarh has vehemently urged authorities to take swift and decisive action against these illegal mobile fuel dispensing units.

They stress the imperative need to dismantle these unauthorised operations to safeguard public life, protect the environment, ensure fair trade practices, and secure government revenues. The association’s plea underscores a critical challenge to urban safety and regulatory integrity, demanding an immediate and robust response from the administration to curb this dangerous trend before it leads to irreversible consequences.