Indian Oil, Bharat Petroleum fined Rs 1 crore, 2 crore: Here’s why

New Delhi, Central Pollution Control Board (CPCB) has fined state-owned Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) for not installing pollution control devices at their petrol pumps. IOC has been fined Rs 1 crore and BPCL Rs 2 crore, the two firms said in separate stock exchange filings.
“The company has received a direction from CPCB to pay compensation of Rs 1 crore for non-installation of Vapour Recovery Systems (VRS) at retail outlets in National Capital Region (NCR),” IOC said adding the fine was for not installing VRS at petrol refuelling stations within the timeline prescribed by the Supreme Court.

When a vehicle is refilled at a fuel station, petrol vapour tends to dissipate into the atmosphere. The vapour contains cancer-causing substances like benzene, toluene and xylene. Petrol pumps were in 2016 ordered to install VRS at fuel stations to prevent petrol vapours from escaping.
“There is no impact on the operation and other activities of the company. However, the financial implication would be limited to a compensation amount of Rs 1 crore,” IOC said.
In a separate filing, BPCL said it has “received notice under Section 5 of Environment (Protection) Act, 1986 to pay environmental compensation of Rs 2 crore to CPCB for non-installation of Vapour Recovery Systems within the timeline prescribed by Supreme Court and CPCB, in petrol refuelling stations and storage terminals.”
BPCL said it is “examining the notice and would be giving appropriate reply requesting the CPCB not to proceed further and discharge the company from the notice”.
Both the companies received notices on October 19, 2023.