G.Os of Finance Department - August 11,2022

Sir/Madam,

Sub:

Petroleum, Oil and Lubricants Mode of purchase of Petrol / Diesel by the Government Organization - Instructions - Issued - Reg.

I am to state that some heads of department are operating petrol bunks in Chennai and other important places in the State for usage of Government Vehicles.

Further, it is known that they are directly purchasing petrol / diesel from IOCL or other organizations on wholesale price or purchase from retail outlets of IOCL and others, since there is no specific guideline for the purchase of Petrol / Diesel.

2. Recently, the petrol / diesel prices have been hiked for the bulk purchase. At the same time the retail price at petrol bunks remain unchanged. Hence, more public organizations have decided to purchase petrol / diesel directly from retail fuel outlets. As petrol / diesel prices fluctuate, this may not always be the case. Further, change in Crude oil price, demand and supply, Taxes, Rupee value against Dollar and Refinery consumption ratio have a direct impact on petrol cost.

3. In para 14 of Tamil Nadu Budget Manual Vol.-I under principles of Financial property as well as in the article 273 of TNFC Vol.-I, it has been enunciated that every Government servant should exercise the same diligence and care in respect of all expenditure from public funds under his control as a person of ordinary prudence would exercise in respect of the expenditure of his own money.

4. Therefore, the Heads of department are requested to purchase fuel in a prudent manner i.e., adopt whichever mode of purchase which would be more cost effective, from the funds allocated in the Budget so as to ensure economy in expenditure.

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