By MAIMBOLWA MULIKELELA –
THE Energy Regulation Board (ERB) will soon commence the implementation of fuel marking system aimed at stopping fuel adulteration and tax evasion by oil dealers.
Fuel adulteration, commingling, smuggling, franchise abuse and excise tax evasion pose serious threats to the revenues that sustain governments and energy companies.
ERB executive director Langiwe Lungu said the implementation of a fuel marking programme would curtail fuel adulteration, smuggling and tax evasion.
Ms Lungu said the fuel marking system would also help deter and block those who intend to smuggle contaminated petroleum products in the country.
The Government loses millions of Kwacha from these illegal practices and, with such large revenues at risk, the integrity of the fuel supply and efficiency of fuel tax collection is of vital importance.
Ms Lungu said in an interview in Lusaka that the issue of diesel being blended with Kerosene would be detected once the fuel marking programme was enforced.
“We have some individuals or syndicate where when fuel reaches Tanzania Zambia Mafuta Pipeline (TAZAMA) or even Ndola they blend it with Kerosene and as you know Kerosene is much cheaper and they are able to make profit from the blend.
“What we are going to do to avoid that adulteration, the fuel marker addresses such that if any Kerosene or substance added to the fuel, we will be able to tell that it has been interfered with,” Ms Lungu said.
She said once the Government’s approvals were done, ERB would commence the implementation of the programme.
“There are certain approvals that we require from Government, one more level that approval has not come through but it has gone through several stages already and once we get that approval done then we can begin the programme,” she said.
Ms Lungu said adulteration of fuel had an adverse effect on vehicles saying that consumers would benefit from such a programme greatly because they would be getting value for their money.
She said the Government would benefit from this programmes as they would be able to get the correct revenue and taxes of the petroleum product being imported by oil marketing companies.