Advanced Technology: Informing and Empowering Fuel Authentication Programs

Methods of Fuel Manipulation

The financial impact of fuels stolen or adulterated every year is estimated to be over $133 billion, creating fuel manipulation and fraud concerns for commercial fuel companies and government agencies. Fuel manipulation has a significant impact on branded fuel companies, decreasing revenue and threatening the brand reputation and competitive advantage.

Similarly, fuel fraud affects governments through lost tax revenue and the exploitation of subsidies. These concerns can be mitigated through advanced technologies for fuel markers, devices, and the resulting data and analytics.

“The financial impact of fuels stolen or adulterated every year is $133 billion.”Ernst & Young Fraud Report on Oil & Gas, 2017

While fuel manipulation can occur accidentally through equipment failures or human error, it is most often an intentional act of adulteration, substitution, diversion or smuggling.

ADULTERATION - adding a lower quality product to the fuel in an attempt to increase profits. Adulterants may include:

• Lower taxed or subsidized fuels
• Inferior products (e.g., waste oil, solvents)
• Lower-grade products
• Stolen petroleum products