Downstream fuel manipulation: protecting your brand
Downstream Fuel Manipulation: Protecting Your Brand
See also: Fuel Quality Industry Report: Downstream Fuel Manipulation – The Threats That Could Cost You
Fuel manipulation can have a major impact on your revenue and brand reputation (and you might not even know it’s occurring).
Fuel integrity is a key component of brand protection for oil and gas companies distributing fuel to its consumers. Unfortunately, fuel manipulation is a widespread problem that can severely undermine your brand. How big is the fuel manipulation problem? Ernst and Young estimates that stolen, adulterated and defrauded fuel contributes to $133 billion of losses each year.
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Fuel manipulation can be notoriously difficult to detect in the supply chain, but when discovered, the magnitude of the problem can be enormous. In a U.S. court case, for example, a petroleum wholesaler was found guilty of diluting medium and premium grades of gasoline with regular unleaded fuel. The company also represented and sold non-branded, low-grade fuels as branded fuels. Executives at the wholesaler were found criminally guilty and the firm was fined 30 million USD.
If you're interested in reading more around this topic, you can watch our video on defending against illicit fuel, here.
Sometimes fuel manipulation is a criminal act, sometimes it’s accidental. Improper dosing or blending of additives into fuels at terminal and retail sites can be caused by equipment failure, human error, or negligence. When that happens, oil companies lose revenue and suffer brand erosion.
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Do you feel confident that your branded fuel that leaves the terminal is the same quality as what reaches the retail site and is ultimately sold to consumers? Without the right tools and technology to detect manipulation, you can’t really be sure.
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