Fuel smuggling remains a threat – energy agency

Fuel smuggling remains a threat to legitimate dealers, Guyana Energy Agency Head, Mahender Sharma said yesterday as he emphasized the need for marking fuel imported into the country.

Responding to a letter in yesterday’s Stabroek News penned by Reggie Bhagwandin, who questioned whether it was still necessary to mark fuel given the changing dynamics in the sector, Sharma said “yes,” since it is an important task that helps to monitor the fuel coming into the country and determine whether it is legal or illegal.

He said that while the situation has changed in neighbouring Venezuela and Trinidad and Tobago, where fuel was subsidized by the governments and sold at a cheaper rate, the biometric marking of fuel remains relevant to monitor the import of fuel.

“It is important to note that diesel continues to be sourced from Venezuela. As recent as last week, the captains of two separate fuel vessels reported sourcing their diesel from Venezuela,” the GEA head said.

Bhagwandin argued that the circumstances under which fuel was marked are no longer prevalent and the GEA should consider abolishing the system.

“Clearly the situation no longer presents itself as a primary source for fuel smugglers to operate in these two countries, therefore we should ask the quintessential question whether fuel smuggling is still a threat to legitimate dealers. If our review shows that it is not then we should do away with the Biometric marking system and its associated cost on the price at the pump,” he said.

In the letter Bhagwandin noted that Trinidad has closed down its refinery and is now importing all its fuel requirements for local consumption and export. It has removed the subsidy and all their fuels are now sold at