Tight fuel regulatory measures coming

06 Nov, 2016 - 00:11 0 Views
Tight fuel regulatory measures coming Mr Partson Mbiriri

The Sunday Mail

Sunday Mail Reporter
Government will chemically “mark” all imported petroleum products to stop entry of substandard or smuggled fuel which deprives Treasury of millions of United States dollars annually. Zimbabwe has become a dumping ground of substandard fuel, while cheap and undeclared petroleum products disguised as being in transit are ending up on the local market.Fuel officially declared as contaminated has been coming in on the pretext that it is destined for industrial use but has been sold to service stations. The Sunday Mail has established that the Zimbabwe Regulatory Authority will soon be marking all imported fuel. This follows successful presentations on the benefits of fuel marking by international companies Global Fluids International and Authentix, which are marking fuel in Tanzania and Ghana.

Fuel markers range from simple coloured dyes to unique covert markers. This does not affect the properties of fuel or its use, and can be analysed or tested using various methods. Fuel that is chemically marked is certified as having all relevant taxes paid for. Secretary for Energy and Power Development Mr Patson Mbiriri said Government was moving to stop illegal activities in the petroleum sector.

“After noting numerous incidences of extremely low priced fuel in a number of unregistered outlets, an increase in the importation of paraffin, uplifting of Jet A1 from depots for use as paraffin, and several cases of poor quality fuel from some outlets, it became clear that some unethical fuel traders were involved in illegal activities,” said Mr Mbiriri in a speech read on his behalf by principal director in the ministry Engineer Stephen Dihwa at a consultative meeting last week.

“Two companies, Global Fluids International and Authentix, companies which are marking fuel in Tanzania and Ghana, were invited to make presentations in order to understand the benefits that are obtained from fuel marking and the institutional and technical requirements of implementing the programme.

“The report by the team …leaves no doubt as to the importance of fuel marking. I need point out that fuel marking is beneficial as it ensures maximum of revenue collection through minimising dumping o duty free export or transit fuel in our market, smuggling and adulteration of dutiable fuel with non dutiable fuel.”

Fuel marking is common in countries like the United Arab Emirates, where unscrupulous dealers buy fuel from Saudi Arabia and blend it with small rations of products such as used oil to render it waste, before using separators to extract the fuel for sale. The system is estimated to prejudice the United Arab Emirates of several billions of dollars in taxes annually.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds