Fuel Marking

The illicit trading of fuel has an estimated value of nearly US$100 billion annually. These misappropriated funds often go largely unreported, making fuel fraud a major threat that poses a serious risk to governments, consumers, oil companies, and the environment.

• Governments suffer significant tax revenue loss and tarnished reputation from the export of inferior goods which is a disincentive for domestic and foreign investment. Furthermore, those that subsidize their fuels for intended beneficiaries are highly vulnerable to counterfeiters who exploit the price arbitrage. This deprives them of revenue to fund policies for their citizens.

• Consumers bear the brunt because they unknowingly purchase adulterated fuel that leaves harmful deposits in their car engines. Modern vehicles require the appropriate fuel to function effectively and illicitly diluted fuel becomes a costly problem that they must resolve.

• Oil companies consequently suffer the cost of paying genuine claims and an even greater one in lost reputation that they have painstakingly built over years.  

• Environmental preservation efforts are indirectly counteracted by fuel fraud. Counterfeiters’ attempts to separate markers from tagged fuels involve the high usage of chemicals and illegal dumping of toxic wastes. Some adulterants even increase tailpipe emissions of harmful pollutants, leading to worsened air pollution.

Since the 1950s, overt and covert dyes have served as the backbone of many fuel marking programs to differentiate fuels based on their tax rates, grades, or types. However, they have proved to be ineffective as criminals are now highly organized and have quickly developed new methods to remove or replicate them. Once removed, it is impossible to identify the laundered fuel. Visual determination of fuels with inherent colors may be challenging to untrained personnel or those with some degree of color misperception.

Reyal is a complete solution with forensic-level security for governments or oil companies that want unambiguous results to combat fuel fraud, secure tax revenues, and maintain brand integrity.