Essential Commodity Act, 1955

Petroleum Products Notification

Submitted To:
Prof D.G.Shukla

Submitted By:

Anubhav Nautiyal

20135010

Hitesh Kankaria

20135021

Kratika Jain

20135030

Manmeet Bhamra

20135034

Purvi Upadhyay

20135049

Sneh Desai

20135054

The Essential Commodities Act,

1955

An Act to provide, in the interests of the

general public, for the control of the
production, supply and distribution of, and
trade and commerce in, certain
commodities.

Petroleum Products
Aviation

Turbine

Fuel
Motor Spirit
Diesel Oil
Kerosene

Liquefied
Petroleum Gas
Naphtha
Paraffin Wax
Lubricants

Defining products:

LPG: Liquefied petroleum gas or liquid petroleum

gas (LPG or LP gas), also referred to as
simply propane or butane, is a flammable mixture
of hydrocarbon gases used as a fuel in heating
appliances, cooking equipment, and vehicles.

Diesel oil:
a fuel obtained from petroleum distillation that is used in
diesel engines. It has a relatively low ignition
temperature (540C) and is ignited by the heat of compr
ession.

Naphtha : is a light hydrocarbon liquid with 90% volume

distillation, by ASTM D-86 distillation method, of 190
degrees Centigrade or less.

Paraffin wax is a white or colorless soft solid

derivable from petroleum , coal or oil shale,
that consists of a mixture of hydrocarbon
molecules containing between twenty and
forty carbon atoms.

Kerosene: Kerosene is a combustible

hydrocarbon liquid widely used as a fuel, in
industry, and in households.

Lubricant: A lubricant is a substance

introduced to reduce friction between
surfaces in mutual contact, which ultimately
reduces the heat generated when the
surfaces move.

LPG (Regulation of use in

motor vehicles) Order, 2001

Restriction on unauthorized acquisition or sale of auto LPG.

Display of stock and selling price of auto LPG.
Procurement, storage and sale of auto LPG by dispensing
station dealer by Government oil company or parallel
marketer.
Assessment and certification rating of parallel marketer.
Maintenance of registers, account books and submission of
return by the dealer.
Maintenance of records and furnishing of information by
parallel marketers.
Power of Entry, Search and Seizure.
Overriding effect of the order.

LPG (Regulation of supply and

distribution) Order, 2000

Restriction of unauthorized possession, supply and

consumption.
Restriction on storage and transportation of LPG.
Restriction on sale or distribution below or in excess of the
standard weight.
Prohibition on carrying unauthorized business of selling LPG.
Possession, supply or sale of LPG equipments.
Assessment and certification rating of parallel marketer.
Maintenance of registers, account books and submission of
return by the dealer.
Maintenance of records and furnishing of information by
parallel marketers.
Power of Entry, Search and Seizure.
Overriding effect of the order

LPG (Restriction on use) Order,

1974
Restriction on use of LPG as fuel for vehicles.
Power of search and seizure

LPG (Regulation of supply and

distribution) Order, 1988
Restriction of possession and consumption.
Restriction on storage and transportation of LPG.
Restriction on sale or distribution below the standard
weight.
Possession, supply or sale of LPG equipments

Light Diesel Oil Order 1973

Dealer

Declared Price

MSP Fixation

According to the Diesel

oil second amendment
order 1973 ; Selling
Light diesel oil in
wholesale or retail with
conjunction to other
business.
Can includes his
representatives or
agents.

LDO can be sold at Price

include the maximum selling
price declared by state
government or district
collector.

According to this order

No dealer shall sell LDO
to any person at price
in excess of including-:
Scheduled Price
Increase or decrease in
Excise duty
Railway Freight, road
transportation
Sales tax and other
local tax
Any Special Surcharge
levied by central govt.

Scheduled price in relation to

any area in state, means the
price of LDO at nearest main
port or refinery indicated in
scheduled appended to this
order.

Light Diesel Oil Order 1973

LDO Stock to be displayed.

Prohibition against withholding of LDO from
sales.
Inspection and maintenance of books,
accounts, documents and records.
Power of entry ,search and seizure

Restriction on Sale and Use of Naphtha:

No person shall either acquire, store and / or sell

Naphtha, without a license issued by the State
Government or District Magistrate or any other Officer
authorized by the central or state government.
No person shall either use or help in any manner the
use of Naphtha except Motor Spirit, High Speed Diesel
and / or any other fuel permitted by the Central
Government, in any automobile.
No person shall either adulterate or help in any
manner adulterating of Motor Spirit and High Speed
Diesel with Naphtha.

Restriction on Sale and Use of

Naphtha:

Every person whosoever is engaged in sale or

trading of Naphtha either imported or indigenous,
for any purpose, whatsoever, shall file end-use
certificates from consumers to whom he sells and
also furnish customer-wise sales to the District
Magistrate or the State Civil Supplies Authorities by
whatever name called, on a Quarterly basis.

Whosoever is engaged in actual use of Naphtha

either indigenous or imported for producing other
petrochemical or any other product should file end
use certificate to District magistrate of civil supplies
Authorities on quarterly basis.

Paraffin Wax ( Supply, Distribution

and Price Fixation ), Order , 1997

Fixation of declared price of Controlled Paraffin

Wax.
Controlled Paraffin Wax not to be sold at a price in
excess of the declared price.
Paraffin wax not to be sold except under an
allotment order issued by the competent authority.
Dealers of Controlled Paraffin Wax to be licensed.
Application for grant license for dealing in
Controlled Paraffin Wax.
Cancellation of license .
Appeal

Paraffin Wax ( Supply, Distribution

and Price Fixation ), Order , 1997

Power of Central Government to issue directions

regarding production etc. of Paraffin Wax
Submission of returns to the competent authority.
Display of certain particulars.
Dealers not to refuse to sell Controlled Paraffin Wax
in pursuance of an allotment orders from the
competent authority.
Person Purchasing Controlled Paraffin Wax to
utilize the Paraffin Wax for the purpose for which it
was purchased.

Kerosene
Restriction on Usage
Procurement, Storage and Sale
Display of Stock and Price by dealers
Maintenance of Registers, Accounts Book
and Submission of Return
Power of Search
Power to Exempt

Notification

2003

IOCL, HPCL, BPCL shall file end use

certificate of Industrial Consumer
Should check and ensure the quality set by
Bureau of India Standards specification No.
IS-1459

Notification

2007

A clause (ga) marker has to be inserted in

the Kerosene Order, 1993
A clause (ka) test kit has to be inserted
A clause 8A is to be inserted, where it says
that kerosene to be blended with marker

Lubrication Oil & Grease

(Processing, Supply & Distribution

Regulation) Order, 1987

Came into force on 1st April, 1987

Purpose:

Regarding registration of the units engaged in

Re-refining of used lubricating oil
Giving license is to make efforts to ensure that
the used lubricating oil from major suppliers in
the organized sector of industry in the state is
supplied to the registered units only

Restriction on Processing and Storage of

lubricating oil: No person shall carry on
the business of a processor except under
and in accordance with the terms and
conditions of a valid license granted to
him under this order.

Adulteration: No person shall carry on

business of processing, manufacturing,
blending, compounding, packaging,
refining, re-refining, selling or
transportation any lubricating oil or grease
which has been adulterated.

Cancellation of License: The competent

authority may, without prejudice to any
other action that may be taken against a
processor under the Essential
Commodities Act, 1955, by order in writing
cancel a license for breach of any of the
terms and conditions of the license and a
copy of the order shall be furnished to the
processor.
Provided

that no license shall be cancelled

under this clause unless the processor has
been given reasonable opportunity of being
heard in the matter

Appeal: Any person aggrieved by an

order made by the competent authority
under Clause 5 or under Clause 6 may,
within the 30 days of the receipt or the
hard copy or the order by him, prefer an
appeal to the State Govt. And the State
Govt. may after giving the applicant an
opportunity of being heard confirm,
reverse or modify such order.

Power of Central Govt. to Issue Directions:

The Central Govt. may, time to time, by
general or special order, issue to any
processor such directions as it consider
necessary regarding the processing ,
storage, transport and disposal, of
lubricant and grease and upon the issue
of such directions, such processor shall be
bound to comply therewith

Power of Entry, Search and Seizure

Application of grant or renewal of license

Thank you!

References
http://www.thefreedictionary.com/

www.investopedia.com
http://seednet.gov.in/Material/Essential_C

ommodity_Act_1955%28No_10_of_1955%2
9.pdf
http://petroleum.nic.in/kero.htm