At the core of the issue that had led to a two-day shut down of all 31 Retail Pump Outlets (RPOs) in Dimapur was the allegation of ‘adulteration’ of diesel and petrol.
According to sources, adulteration takes place when either diesel or petrol is mixed with Superior Kerosene Oil (SKO) distributed through the Public Distribution System (PDS).
In addition, adulteration is also achieved after mixing fuel with ‘zero solvent’ (commonly related to hydrocarbons such as propanes, benzene, toluene and xylenes used extensively in small scale paint industries).
Some of the solvents cost approximately around Rs.20 per litre. Mixing say, 300 millilitres to a litre means obtaining more volume and consequently, more income.
Similarly, when 30 percent or 300 millilitres of kerosene is mixed with diesel or petrol, one litre is increased to 1.3 litres and consequently, cash income also increases significantly. Currently in Dimapur, the price of diesel is Rs.51.67 per litre and petrol is around Rs.73.43.
Adding either solvent(s) or kerosene to motor fuel increases the volume and subsequent income. According to some sources, various forms of taxations has given a handle to some to indulge in the adulteration business in order to make ends meet.
Though some sparingly use adulterants, the fact is that uses of such adulterated fuel causes serious damage to vehicle engines at a time when prices of all items are on the rise. It may be recalled that there had been at least three major fire incidents in Dimapur involving fuel pumps or oil tankers during the process of adulteration with chemical solvent(s).
SKO: Nagaland receives its monthly quota of 14,60,000 litres of kerosene through the Indian Oil Corporation depot.
Some quantity is supposed to be distributed to 20 RPOs(having license under old dealership agreements) and various local SKO permit holders.
Also, Nagaland receives 18,50,00 litres of petrol and 60,00,000 lakh litres of diesel per month from the IOC depot in Dimapur.
These are supplied to all the IOC fuel pumps throughout Nagaland. It is not known if IOC supplies fuel to other fuel pumps other than IOC dealers.
According to sources, a major bulk of the kerosene quota is distributed under the dispensation of various official sources. Over and above, it is learnt that various organisations take “cuts” from every litre of kerosene distributed under the dispensation.
Approximately, DCs of all districts get around 30,000 litres a month which are distributed to the card holders through various colonies or wards.
That the state receives as much as 14,60,000 litres of kerosene per month through PDS is baffling, especially when most of those who are entitled, don’t get it at the PDS rate but compelled to procure it in the open market. The army and paramilitary forces reportedly also obtain their quota from the state share each month.
Kerosene through PDS is priced at Rs.20 per litre and sold at prices ranging between Rs.50 to Rs.55 per litre in the open market.
A huge quantity of kerosene received by the state as its monthly quota from the IOC, invariably finds its way into the black market considering the huge price difference between PDS rate and open market rate.
The efforts of the IOC to discourage such practices by adding blue dye hasn’t helped. According to sources, neutralising the dye in PDS kerosene is no longer a problem.