In October 2006, Petroleum Minister Murli Deora rolled out a project of dyeing kerosene with a non-removable marker imported from Authentix of the UK, saying it would bring “an end” to the adulteration of auto fuel. Annual cost: Rs 160 crore.

But this week, officials from the three state-run oil marketing companies (OMC) told Deora’s ministry that tests conducted at their labs showed that “Authentix Marker can be laundered”.

“As per the findings, at a dosage of 1 percent, the powder removed the Authentix Marker. At a dosage of 2 percent, the powder removed the blue colour of the PDS kerosene,” says the paper jointly submitted by the three OMCs (Oil Marketing Companies): Indian Oil Corp, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd.

The powder, tested separately by their labs in September, was provided by IOC’s Vigilance Department. According to lab officials, the brown powder is “a naturally occurring clay with 80 percent silica and remaining being inorganic salts”.

Authentix Director (International) Tim Wilkinson had claimed at the launch that the marker cannot be tampered with. But audit results between February 2007 and March 2008 showed most retail outlets were escaping the test.

After trial runs until February 2007 and the introduction of the adulterant marker thereafter, inspection of 184,889 outlets detected kerosene-mixing at only 204 pumps, a strike rate of 0.1 percent, with 242 tank trucks failing the test, again a strike rate of 0.1 percent. Aware of the Authentix Marker’s failure, the Ministry directed the OMCs on March 5 this year “to make efforts to identify alternative marker suppliers by conduct of appropriate field trials”.

But there is not much progress six months later as UK firms John Hogg and Johnson Metthey have expressed inability to offer a marker to detect 1 percent adulteration, and BASF of Germany could not make it to the Technical Committee meeting last May. That has left Chematek SpA of Italy as the lone vendor. Its marker cleared lab tests in July but field trials would start after legal papers have been vetted by the OMCs.

The ministry has given three more months to the OMCs to hunt for another marker. Else, it would have to amend the control orders governing kerosene, petrol and diesel supply before it can stop the doping of Authentix Marker.

Spiking for profit

• The marker Authentix is colourless. As per Govt orders, all kerosene has to be spiked with this marker at the refinery gate. All PDS kerosene has to be dyed blue. When kerosene with marker is used to adulterate fuel, it shows up as pink when used with a specific reagent.

• 2006 study by National Council for Applied Economic Research showed 38.6% of kerosene diverted for other use.

• India consumed 9.35 million tonnes of kerosene in 2007-08 entirely sold through PDS at Rs 9.09 per litre.

• Its low administered price is incentive for dealers who divert large volumes to mix it in petrol priced at Rs 50.56 or diesel sold at Rs 34.80 per litre.