# How much evaporation loss is allowed?

> The evaporation and handling loss allowances for MS (0.75%/0.60%) and HSD (0.25%/0.20%) in MDG 2024 clause 5.1.11, how they apply around the 600 KL annual average, and the shrinkage allowance.

Canonical: https://dipdensity.watsinfo.com/guides/evaporation-loss-allowance/
Last updated: 2026-11-02

**Short answer:** MDG 2024 allows petrol an evaporation and handling loss of 0.75% on quantity sold up to an annual average of 600 KL, and 0.60% beyond. Diesel is allowed 0.25% up to 600 KL and 0.20% beyond. These are considered when a stock variation is established.

## The rates

| Fuel | Up to an annual average of 600 KL | Beyond 600 KL |
|---|---|---|
| Petrol (MS) | 0.75% | 0.60% |
| Diesel (HSD) | 0.25% | 0.20% |

## Example

A pump sells **900 KL of petrol** in a year.

- First 600 KL at 0.75% = 4,500 litres
- Next 300 KL at 0.60% = 1,800 litres
- **Allowed: 6,300 litres a year**, about 525 a month or 17 a day.

The same pump selling 900 KL of diesel would be allowed 600 × 0.25% + 300 × 0.20% = 1,500 + 600 = **2,100 litres**.

Work out your own with the [evaporation loss calculator](https://dipdensity.watsinfo.com/tools/evaporation-loss-calculator/).

## Cutting the loss

- Keep dip pipe caps and fill caps closed and sealed.
- Avoid unloading in the hottest part of the day where you can.
- Fix vapour leaks at fittings.
- Check meters with the 5 litre measure: a meter delivering over looks exactly like evaporation in the stock.

## Questions

### What is the shrinkage allowance?

At some locations the oil company gives a shrinkage allowance, or a temperature variation allowance, shown on the invoice in rupees per KL. MDG Annexure 8 turns it into a percentage of the net price, which is applied to receipts. It only applies where the company allows it.

### Where does petrol go when it evaporates?

Mostly out of the vent pipe when the tank breathes in the heat of the day, and as vapour pushed out while a tanker unloads or a vehicle fills.

## Sources

- [BPCL, Marketing Discipline Guidelines 2024](https://www.bharatpetroleum.in/images/files/MDG-2024-Effective-24-10-2024.pdf)