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Application of micro organisms for effective removal of hydrocarbon contamination from soil has been considered by several workers since decontamination of polluted soil by other methods leads to production of toxic compounds and these techniques are non-economic also. In the present study, soil samples from five different petroleum sludge contaminated sites were studied for assessment of their diesel degrading potential. The average heterogeneous fungal count in different soil samples ranged from 35.67±5.69 to 51.33±7.64 and the average count of diesel utilizing fungi ranged from 3.33±1.15 to 26.00±4.00. Total heterogeneous fungal count and diesel utilizing fungal count varied significantly in sludge production and disposal site, as compared to control soil. Thirteen native fungi species of six fungal genera were isolated from different soil samples. The identified fungal genera included Aspergillus …