Case Study

European transit hub realizes gain of €139 million in excise taxes within first year of partnering with Authentix to implement a custom-tailored Fuel Marking Program.

  • Trusted by 12 countries to combat fuel fraud and maximize tax revenue
  • Authentix has marked over 1.5 trillion liters of fuel

Problem

A country in Central Europe was experiencing a decline in the sale of taxable diesel and petrol over a period of several years, while the number of vehicles and fuel stations increased annually. It was estimated that at least 37% of diesel sold in the country was not sold through legal wholesale channels. Due to this extensive smuggling problem, the government estimated their tax revenue losses to be in excess of €60 million, with some experts estimating as high as €100 million annually.

Solution

A state consortium was created to combat the fuel smuggling issue. The government established legislation and standards to support and authorize a Fuel Marking Program. Authentix created a robust, layered testing model including field and forensic laboratory testing. The layered solution included:

  • A quantitative (measurable) covert marker
  • A qualitative (yes / no) covert marker
  • Easy-to-use field analyzers deployed in a field inspection system
  • Forensic testing and chain-of-custody procedures for legal case management support

Results

As a result of the comprehensive fuel marking program was a benefit to both the government and the fuel marketers in the country. The fuel marketers garnered additional revenue from an 18% increase in diesel sales volume and a 14% percent increase in petrol volume while the government recovered the additional tax revenue. In the first year of the program, a total of €139 million in excise taxes were recovered. The program has been a success in the country since 2014.