INTERNATIONAL EXPERIENCE IN DEALING
WITH ADULTERATION

10.0 INTERNATIONAL EXPERIENCE IN DEALING WITH ADULTERATION

» Europe
In Europe currently National Standards Bodies such as British Standard Institute (BSI) carries out fuel quality checks. The failure cases lead to the penalties of filling station owner and fuel Supply Company. Belgium has been active on Fuel quality checks for last 3 yrs. Initially, 30 % fuel samples failed. Recently the situation has improved with the threat that the offending companies would be named & heavily fined. For checking fuel adulteration, a unified system of transport fuel quality monitoring system is being developed for implementation in EU.

» United Kingdoms (UK)
In U.K, the following procedures are used by companies to comply with government quality guidelines and to avoid fraud in the handling and marketing of the petroleum products:

Audit checks are carried out by Customs Authorities. Samples of products are collected from retail outlets and analyzed for conformity with British standards for gasoline and diesel fuels.

The results are shared with the product suppliers. Any reasons for the requirement are investigated and necessary remedial actions are taken. In parallel with Government audits, responsible petroleum companies do product quality checks from the point of manufacture to the point of sale.

» United States of America (USA)
In USA there are two systems. USEPA carries out tests on spot basis. During the complete lead phase out much vigil was kept and heavy fines were imposed for adulterated unleaded gasoline with leaded gasoline. The automobile manufacturers association conducts regular survey to assure proper fuel quality for the required performance of the vehicles.

» Australia
The Commonwealth Government has passed legislation to ensure Australian consumers receives high quality petrol & diesel. The Fuel Quality Standards Act 2000 and Fuel Quality standards regulations 2001 provided the framework for enforcing national fuel quality standards. It regulates the supply of fuel to consumers, reduce toxic emissions and ensure that, by using clean fuels, modern vehicles fitted with advanced emission control technologies operate at peak performance. Commonwealth inspectors appointed under the Act will monitor compliance with fuel quality, legislation and assist with enforcement supplier or producer found guilty of supplying " off-spec" fuel may face penalties of upto $ 550,000.

» Kenya
Since June 1999, the Government of Kenya has been adding a Biocode marker to fuel as a trace, to designate fuel for local consumption (taxed) or for export (untaxed). The aim is to prevent fuel adulteration and preventing fuel traders from selling fuels designed for export on the domestic market as a way to avoid taxes. The system is said to have reduced adulteration and illicit trade, recovering US$30 million in taxes for government and US$ 50 million in sales for oil companies

» Russian federation
To give retail outlets an incentive to maintain high standards, the Moscow Fuel Association has started awarding blue quality sign to those meeting its quality standards. The retailer applying to the association signs a code of honor binding them to sell fuel meeting the standards. Any caught violating the standards are denied the quality sign.

» Pakistan
Shell, an oil company in Pakistan has upgraded about 200 new retail outlets. In addition to widespread fuel adulteration and short weighing, its marketing strategy is to compete on the basis of superior quality and service quality. To demonstrate its commitment to product quality, Shell has been dispatching chemists to its retail outlets where they test samples publicly.