M&D of Hpcl

Topics: Petroleum, Retailing, Underground storage tank Pages: 78 (15604 words) Published: June 5, 2013
Marketing Discipline Guidelines

for RO / SKO Dealerships of Public Sector Marketing Companies

Effective 8th January 2013



INTRODUCTION – The evolution of oil industry in India can be traced to the early 20 th century when the industry began its operations through Superior Kerosene Oil (SKO) dealerships. In due course of time the petroleum business prospered and expanded and by independence the industry had commenced marketing of Motor Spirit (MS) and High Speed Diesel (HSD). The network developed under private oil companies like Burmah Shell, Caltex and ESSO. In 1958, Indian Oil Corporation (IOC) was formed giving birth to the entry of the public sector in the petroleum business. Thereafter with the nationalization of Burmah Shell, Caltex and ESSO in the 1970s, the concept of public sector oil companies came into being and the petroleum business prospered witnessing substantial growth.

In 2001-02 the public sector oil marketing companies (OMCs) had a network around 16000 retail outlets (ROs), 9000 LPG distributorships and 6500 SKO dealerships. The network has seen tremendous expansion to nearly 41000 RO dealerships, 11100 LPG distributorships and 6600 SKO dealerships as on 01.01.2012. The deregulation of the petroleum sector witnessed the entry of private players like Reliance, Essar and Shell in the petroleum sector who between themselves have setup nearly 3000 ROs. However, the dominance of the OMCs continued unabated in the retail market. The Marketing Discipline Guidelines (MDG) which were formulated for the first time in 1981-82 helped the OMCs to maintain discipline in the operation of retail network and provide high customer service standards.

In recent times the Government as well as Industry has felt the need to review the MDG in view of the changing circumstances and market scenario. The need to set very high customer service benchmarks for OMCs and for their dealer network is the need of the hour. In view of this, after discussions at various forums, these guidelines have been formulated.


INDEX Chapter No.
1 1.1 1.2 1.3 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3 3.1 3.2 3.3 4 4.1 4.2 4.3 4.4 5 5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9



Page NO.
5 5 5 7 8 9 11 13 13 13 15 16 19 21 22 22 22 23 25 25 27 27 28 28 28 29 30 31 31 31 32 33 33 33 34 34 34 34 2

Procedure for handling of products at Retail Outlets by dealers Receipt of product Decanting of product Stock / price controls Quality / Quantity control measures Observance of statutory & other regulations Customer service & general amenities Industry Guidelines for Sample collection and testing Preamble Drawal of samples Drawal of samples by dealer Drawal of samples by Oil Company representatives General procedure for drawl of Samples Sample containers to be used Sealing of sampling containers Sample tags Retention of samples Sample testing & results Handling of MS / HSD / SKO at Company’s storage points and Duties of Oil Companies Quality / Quantity checks Sealing / GPS Training of dealer / dealer’s staff Maintenance of Company’s equipments at Retail Outlets Dispensing units – Standardizations of report Maintenance of pumps & other equipments Rectification of defects in Dispensing units / pipeline / tanks Detection of presence of water in tanks Type of Irregularities at Retail Outlets ( MS / HSD) and SKO-LDO Dealerships MS / HSD Adulteration of product Short delivery of products Totalizer seals found tampaered with Additional / unauthorized fittings / gears found in dispensing units Unauthorized storage facilities / Interconnection Unauthorized purchase / sales Tank lorry carrying unauthorized product found decanting product into RO tanks Refusal by the dealer to allow drawl of sample or carry out inspection Non-availability of reference density

5.1.10 5.1.11 5.1.12 5.1.13...
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