The Dakshina Kannada and Udupi District Petroleum Dealers Association, Mangaluru, has urged the administration to stop the sale of spurious oil, branding it biodiesel, by unauthorised persons thereby affecting the State exchequer.
In a memorandum to the Dakshina Kannada Deputy Commissioner here, the Association's immediate past president Satish N. Kamath said suppliers of automotive fuel of unknown quality, purported to be biodiesel, are mushrooming in the market.
Most of such suppliers are operating from covered godowns without any name or brand; unhindered supply of the product in the market is jeopardising the efforts of the Central government in marketing the BS VI quality of diesel in retail outlets. The product, which is selling at a price much lower to normal diesel, is not only affecting the dealers directly but also affecting the government exchequer as there is no customs duty, excise duty or VAT applicable in the transaction.
Mr. Nayak said safety of the fuel is another concern as the supply installations and facilities of the operators do not meet the requirements of the Department of Explosives as normally required in the OMC outlets or terminals.