Book stock is the opening dip stock plus receipts, less any shrinkage allowed, less sales by the meters. Variation is the closing dip stock less the book stock. MDG 2024 Annexure 9 compares them within ±4% of the closing dip stock.
MDG 2024, Annexure 9: book stock F compared with dip stock G, ±4% of G. Shrinkage applies only where the company allows it.
Annexure 9, line by line
| Line | What it is |
|---|---|
| A | Stock as per opening dip |
| B | Plus receipts |
| C | Less shrinkage, where allowed |
| D | A + B − C |
| E | Less sales as per meter |
| F | Closing stock as per book, D − E |
| G | Closing stock as per dip |
| F compared to G, ±4% of G |
What happens beyond 4%
Clause 5.1.11 of the MDG treats stock variation beyond the permissible limit as an irregularity. A gain beyond the limit leads to samples, a stop on sales and a study of the cause. A loss beyond the limit keeps sales going but calls for the dealer’s explanation, and supply can stop if it is not satisfactory.
Figures here are for reference. Your oil company’s certified calibration chart, approved instruments and the Marketing Discipline Guidelines always prevail.
Questions
What counts as sales?
Sales by the meters (totalizer closing less opening), less any test fuel poured back into the tank, which the meter counted but nobody bought.
What is shrinkage?
At some locations the oil company allows a shrinkage or temperature variation allowance, shown on the invoice. Annexure 9 takes it off receipts. If your invoices show none, leave it at 0.
My variation is inside 4% but always negative.
A small, steady loss every day is worth chasing even inside the band. It can be evaporation, a meter delivering over, a leak, or a dip read the same wrong way each time.