U.S. firm making big dent in fuel smuggling in Guyana

U.S.-based company Authentix said it has helped Guyana to greatly reduce fuel crimes which result in lost tax revenue, cutting out some 32 per cent of illegal fuel sites in the past six years.

In a statement, Authentix said thanks to an effective fuel marking programme powered by Authentix technology, the level of fuel adulteration has dropped significantly since the programme was initiated, resulting in increased tax revenues.

From 2006 to 2011, the percentage of identified sites found with illegal fuel has progressively decreased from 34 per cent in 2006 to two per cent in 2011. Continuing efforts are being made to keep this level low and drive down the level of illegal activity even further, the company said.

When the Guyana Energy Agency (GEA) began working with Authentix, the country was facing a myriad of fuel-related tax losses. Non-taxed fuel was being smuggled into Guyana and sold illegally to retail sites with no means of identifying which fuels were legally imported and which were smuggled. Additionally, taxed road fuels were being adulterated with low-tax kerosene.

To combat these problems, Authentix fuel markers are blended into legitimate fuel at secured terminals. Samples from retail stations are then tested for the expected concentration of these markers. Any level of dilution is quickly determined and proper enforcement procedures are then initiated by the GEA.

The implementation of the fuel marking programme has enabled the authorities to reduce the incidence of fuel smuggling in the country, and recover revenues that would have been lost through illegitimate sales and tax evasion.

“Since 2006, the rate of fuel adulteration detected has substantially dropped each year, and we will continue, undeterred in our efforts, to eliminate fuel smuggling,” GEA Chief Executive Officer Dr Mahender Sharma said.

“Guyana has seen a myriad of additional benefits including improved and sustained sales of legitimate fuel as well as improved and sustained collection of Excise Tax.

The marking programme is also an economic boost as it provides dozens of local jobs.” “Keeping the fuel marking programme in place and enforcing the laws mean that Guyana is recovering fuel tax revenues previously lost to criminals,” Authentix Global Business Development President Lal Pearce.

“The vigilance of the GEA combined with the effectiveness and continued use of the Authentix fuel marking programme ensures that the rate of fuel-related crimes will continue to decrease.” Authentix manages the programme turnkey with the GEA. An internal analysis by the GEA completed in 2009 estimated the net benefits of the programme to represent a 443 per cent return on investment.

Authentix operates fuel marking programmes on five continents, helping governments protect fuel tax revenues and helping leading oil and gas companies protect their brands. Authentix, prides itself as the global leaders in authentication, provides brand protection, Excise Tax recovery, and supply chain security solutions to governments and 500 companies around the world.