Department of Trade and IOCL agree to work together to ensure fuel quality

Last year, this paper reported on how many new Euro 6 diesel vehicles of different car companies were breaking down with similar engine problems.

The main suspect was the quality of diesel fuel coming in from India, and this was borne out when two fuel quality reports from broken down vehicles showed the fuel quality was not to Euro 6 standard, impacting the engines.

Following this, in the third week of September 2024, eight fuel samples of MS (petrol) and HSD (diesel) were collected from Indian fuel tankers (IOCL, BPCL and HPCL) before being decanted into the dealers’ underground tanks in Phuentsholing.

Out of the eight samples sent for testing outside, one sample did not meet Euro 6 standards, while the others were within the permissible parameters.

The one sample that did not meet the Bureau of Indian Standards (BIS-6) specifications, was primarily due to elevated sulfur content, along with minor deviations in boiling point and distillation residue.

The Department of Trade (DoT) requested for meetings with the Quality Control Department of the Public Sector Undertakings (PSUs) in India who supply fuel to Bhutan to discuss these matters in detail. There was, however, no response till November 2024 despite follow ups and in December 2024 the matter was handed over to the Ministry of Foreign Affairs and External Trade to put the request to the Government of India.

It appears this worked, and so in addition to ongoing discussions with officials from Guwahati and Siliguri Divisional Offices, a high-level bilateral meeting was held with Indian Oil Corporation Ltd (IOCL) in Phuentsholing on 7th March 2025, led by Executive Director (Retail Sales) and All India Head, (Mumbai).

IOCL is the largest fuel supplier to Bhutan among the three Oil PSUs.

The discussions covered a range of issues, including supply chain operations and logistical challenges from supply points to designated depots in Bhutan.

DoT requested IOCL to dispatch quality control experts to Bhutan for further deliberations on fuel quality concerns.

In response, a delegation from IOCL’s Quality Control (QC) Department, led by the Executive Director (QC), visited Bhutan and held a meeting in Thimphu on 7th April 2025. During the meeting, the Department raised all fuel quality concerns, to which the IOCL team reiterated their commitment to stringent QC protocols, which are upheld at three critical levels: Refinery, Terminal, and Depots. The team emphasized that IOCL supplies fuel to multiple countries, including Sri Lanka, Nepal, and Mauritius, without compromising quality standards and has never encountered quality related issues. Additionally, they highlighted the implementation of e-lock and Vehicle Tracking Systems in all tankers since November 2024 to prevent tampering during transit.

The IOCL team stressed the importance of two things. The first is proper calibration and regular verification of laboratory instruments (e.g. hydrometers, thermometers) to ensure accurate density measurement at 15°C a key parameter for quality control and audits.

The second is continuous training for operational personnel to ensure strict adherence to Standard Operating Procedures (SOPs) and minimize measurement errors.

The meeting, however, led to some important outcomes. One was a decision to send quarterly random fuel samples (3 samples) to IOCL’s lab in India for testing and verification.

 A directive that tank Lorries failing density tests (beyond ±3.0 kg/m³ tolerance) or with e-lock system issues should not be decanted, with immediate reporting to the supply location/concerned officials

There was clarification of QC checks required before decantation of tank trucks and agreement on periodic calibration of hydrometers and thermometers to maintain accuracy.

Following the meeting, IOCL’s General Manager, Quality Control (QC), conducted a training session for Bhutanese dealers and officials from the regional office on the SOPs on 8th April 2025 in Phuentsholing, focusing on proper fuel sampling and adherence to Quality Control protocols.

Here, on the measures to include fuel quality will include enhanced QC checks, calibration protocols, random sample testing, and dealer and operational personnel training to ensure compliance with fuel quality standards.

With IOCL’s support following the 7th April 2025 meeting, IOCL’s General Manager (QC) conducted a training session for Bhutanese dealers on SOPs on 8th April 2025 in Phuentsholing, focusing on proper fuel sampling and adherence to QC protocols.

The Department will be receiving 12 testing kits and 100 sample boxes from IOCL on a pro bono basis in the 1st week of May 2025. Some of the kits will be distributed to the PoL dealers.

An official said, “Further, the Government of India has also generously offered capacity building training to concerned Bhutanese officials to check the quality of the fuel supplied to Bhutan from India. We have accepted this offer and are awaiting further details.”

Lastly, DoT has proposed an adequate budget in the budget for FY 2025-26 to procure a testing machine for detection of sulfur levels in fuel. This will be kept at the Thinchupangkha Laboratory and will enable testing of fuel for sulfur content which is a main parameter for BIS 6 fuel specification. 

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