Automation to plug leaks at fuel outlets

Oil marketers on Rs 2,000-cr drive for cleaner operations

Oil marketing companies (OMCs) will automate systems and ensure real-time monitoring of their 55,000-odd outlets in the country by December 2018, to check scams. 

Real-time monitoring means if a litre of petrol or diesel is sold, the company concerned will know of that immediately. According to officials, Rs 4-5 lakh would be spent on automating each outlet, which translates to an overall investment of at least Rs 2,000 crore for OMCs Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL).
 

“By December 2018, we will automate 100 per cent of our retail outlets,” said Sanjiv Singh, chairman, IndianOil. “Later, real-time monitoring will also happen.”

The step is being taken to stop scams like the one discovered earlier this year in Uttar Pradesh, where a special task force had reported tampering at some outlets. Fuel dispensing units were fitted with electronic chips to reduce outflow by 10 per cent.

As of October, 2,500 outlets of IOC, 4,800 outlets of HPCL and some of BPCL have been automated. Of the 60,799 fuel retail outlets in India, state-run companies have 55,325 outlets. These include 26,489 fuel stations of IOC, 14,161 of BPCL and 14,675 of HPCL. The remaining 5,474 outlets are run by private sector players, including Essar, Reliance Industries and Shell.

“Out of our 14,600 outlets,” said M K Surana, chairman and managing director of HPCL, “around 8,100 sell more than 100 kilolitre (kl). We are targeting to get all those automated by March 31, 2018, and the remaining by December 2018.” On a monthly basis, each of these outlets sell an average of 170 kl.

After the UP incident, Petroleum Minister Dharmendra Pradhan asked states to crack down on such practices. Some outlets in other states were also found to be indulging in similar activities.

IndianOil’s Singh said: “All our tankers now have a vehicle-tracking system. A lot of things are happening at the backend. In an automated retail outlet, tank stock and the dispenser nozzle will be scrutinised.”

Real-time monitoring would allow the companies to record activities through a centralised system. Such a move would help fight competition, too.

Aggressive expansion of private companies has come as a challenge for OMCs. “We are also looking at aggressive retail expansion. We’ve added 216 outlets in the past six months and targeting another 200 outlets by March,” said Surana.

Stating that the aggressive foray of private sector was an opportunity for them, Singh added, “I think after the first entry of private players in 2004-05, the three OMCs have significantly improved. We are fully focused on retail. Besides, we feed the whole country and not just the markets that are suitable for us.”