In India, only authorised retailers can sell petrol, diesel and other fuels legally. They need special licenses and permits to do so. However, in many cities, there are people and institutions that sell petrol and diesel illegally, without proper licenses. These black market agents usually charge higher than the market prices for a litre of fuel. Recently, Kerala police busted a fuel-smuggling business that used a modified dumper truck to sell diesel illegally in some parts of the district. Let’s take a deep dive into this.
The incident happened in Tiruvallur in Vadakara, Calicut. The loading bay of a dumper truck was modified to accommodate a 1200L tank ( some reports say this to be 4000L), an electric dispenser, gauges and a billing machine.
This truck is thus a mobile fuel dispenser in disguise. The tank and machinery were concealed well and topped with hollow bricks to make it look like the truck was transporting the same.
The Mahe Diesel Smuggling: What’s It All About?
Now that we talked about the truck, let’s dive into the business model. The whereabouts of the person/ firm that did this are unclear. The truck was being used to buy fuel (diesel) in bulk from Mahe, transport it to places like Mukkom, Kodiyathur, and Karassery, and sell it to vehicles deployed in quarries there. The trucks and heavy machinery here run on diesel and would benefit from a mobile diesel dispenser.
At the time of writing this article, diesel has a price of ₹81.90 per litre in Mahe. This is after a recent upward revision this month- resulting from a revised VAT structure.
It is still 11 odd rupees less than diesel prices in cities like Kochi. Mahe is part of Pondicherry (Puducherry)- a union territory. The government here maintains a policy of keeping a competitive edge in the prices of fuel, liquor and more.
Let’s assume the truck’s capacity to be 1200L. Sticking to the above prices, filling it up from Mahe will cost Rs 98,280. At the time of writing this story, the price of diesel in Calicut is Rs 95.02. Selling at the market price would mean the truck owner/ dealer makes Rs 1,14034.
This translates to a profit of 15,744. However, upselling is common in such cases. This means higher margins and more profits every month. A truck makes Rs 15,744 a day, the more trucks you own, the bigger the profits. Reports say that this isn’t a one-off case and that there could be more people who are into this business.
Mobile Dispenser ( Fuel Truck): The Good Sides Of It
Fuel trucks or mobile fuel dispensers can be extremely helpful in real life. These provide the convenience of fuelling from literally anywhere and save the pain of having to find out the faraway fuel station and make it to there, without running out of fuel mid-way.
There could be a fuel truck stationed somewhere in between! It also gives the convenience of setting up mobile fuel stations at places with limited or difficult access, like remote hilly areas or mountain passes.
In India, many mainstream players like Bharat Petroleum, Indian Oil, and HP offer mobile dispenser services. These trucks charge the same as conventional fuel stations. It is just like fuelling from a place that looks less like a place and more like a truck! Well, we look forward to companies deploying more of these units across India- especially in rural areas and places with limited access.