The Energy Regulation Board (ERB) says Government is losing about US$81 million annually in revenue through rampant illegal fuel dumping and adulteration. ERB executive director Langiwe Lungu said at a press briefing yesterday that the regulatory authority will not entertain illegal activities in the petroleum sub-sector.

Ms Lungu said ERB will work with the Zambia Revenue Authority, Zambia Environmental Management Agency, Drug Enforcement Commission and Zambia Police Service to firmly deal with undesirable elements in the sector.

She said the involvement of law enforcement agencies will ensure that the quality of fuel is guaranteed in Zambia and prevent further loss of revenue.
“Through the ongoing fuel marking programme, ERB has established that there has been rampant illegal fuel dumping and adulteration in Zambia which, when curtailed, could translate to about US$81 million to Government per annum.

“The incremental tax revenues that would result in the following successful enforcement of a sustained fuel marking programme in Zambia is estimated to be about US$81 million per year,” she said. Ms Lungu said ERB will not focus on enforcement action in accordance with the country’s fuel marking and monitoring regulations to halt illegality in the petroleum sub-sector.

“The ERB and the aforementioned government agencies will each effect the relevant enforcement actions in accordance with their respective mandates to root out this scourge,” she said.

She said there is a high level of fiscal tax avoidance through dilution of domestic purchases with unmarked products and kerosene, among others.
Ms Lungu said in view of the findings, ERB will not only take action against perpetrators of such illegalities but will also conduct continuous impromptu sampling and testing of fuel at all filling stations and other facilities belonging to oil marketing companies.

“The board shall suspend or revoke the licence of a convicted of the offence. In this regard, stakeholders in the petroleum supply chain are urged to familiarise themselves with the provisions of the ERB,” she said. Fuel marking primarily seeks to curb dumpling of transit fuel, smuggling and adulteration of fuel with cheaper products such as kerosene.