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.
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.
Figures here are for reference. Your oil company’s certified calibration chart, approved instruments and the Marketing Discipline Guidelines always prevail.
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.