FIGHTING ILLEGAL FUEL VENDING
ONE of the main functions of the Energy Regulation Board (ERB) is to issue licenses to all energy undertakings in the country.
The ERB regulates three main subsectors namely, Electricity, Petroleum as well as other forms of energy, which includes solar and Liquefied Petroleum Gas (LPG).
However, for purposes of this discourse, focus will be on the Petroleum sub-sector as a regulated sector. The petroleum sub-sector in simple terms encompasses products such as Petrol, Diesel, Jet A 1 and Kerosene, which is commonly known as “Paraffin.”
Through regulation, the ERB ensures that all petroleum products are of quality with regard to how they are processed, transported and stored. This is for consumers to get value for their money.
However, the petroleum sub-sector has its own challenges particularly with regard to transportation and retailing of the products.
There is growing concern on the rising number of unlicensed (illegal) businesses that are transporting and selling petroleum products. This is contrary to the law which prescribes that every person or group of persons and/or company that intends to store, transport, distribute or retail petroleum products, must obtain a licence from the ERB.
Without the ERB licence, such a business is illegal and contravenes the Energy Regulation Act Cap 436 of the Laws of Zambia.
In this regard, ERB has initiated a number of campaign activities to sensitise the public on the dangers of operating illegal businesses in the petroleum sub-sector, otherwise known as illegal fuel vending. Further, the awareness activities also educate the public that this illegal activity may attract prosecution for those involved.
In addition, the ERB in collaboration with stakeholders like the Zambia Police and local authorities conducts regular, periodic and random checks in areas that may be involved in illegal fuel vending activities across the country.
Not too long ago one such joint operation led to the seizure of 1, 200 litres of fuel at a house in Chief Chewe’s area in Chinsali in the first quarter of 2017.
There are several factors that have prompted the regulator to fight the vice of illegal fuel vending. Among them is the fact that the fuel sold on the “black market” poses a danger to fuel engines as fuel quality from unlicensed sites cannot be guaranteed as it is prone to adulteration.
It is to be expected that persons who sell fuel illegally may compromise the quality of the products by adding other substances to increase volumes in order to maximize on their sales and profit. In such circumstances, the buyer (motorists) has no protection in an event of fuel contamination complaints.
Further, fuel particularly petrol is a flammable substance and as such requires expert knowledge on handling and storage. It therefore poses a great fire risk to both the community and handlers of such products.
An example of the consequences of illegal fuel vending is the incident in Sesheke where a family of five in Katima Mulilo in Sesheke narrowly escaped death after their house in which they were also storing fuel caught fire.
Their house which is located near the border went up in flames after the fuel caught fire. Upon inspection, the ERB discovered that the house belonged to a named resident who was involved in illegal cross border trading of petroleum products.
Details gathered after the fire showed that the fuel had been stored in a windowless house posing an even greater threat to life.
ERB inspectors learnt that there were five drums and twelve 30-litre containers of petrol in the house at the time of the incident.
Later, it was revealed that the family had been involved in illegal fuel trading with products bought from a neighbouring country.
“We buy petrol and diesel from across in bulk and store in the house where we all live.” The named family member narrated that they heard “a sound like an atomic bomb.”
Luckily, family members survived as there was no one at home or in the house when the incident occurred. However, they lost everything in the inferno which lasted for almost three hours. According to the local Police, the owner of the illegal business ran away.
The Sesheke incident is one among many unreported cases of gutted property due to illegal fuel vending. In Sinazongwe alone, the ERB unearthed a scam where two tankers with a volume of 9, 000 litres of petrol each were found selling products to the surrounding community without a licence. In collaboration with the law enforcement agencies, the unlicensed sites ceased operations after police in the area conducted a raid.
Meanwhile, ERB has constantly advised the public to avoid engaging themselves in any form of petroleum trading if they did not have a licence as doing so was illegal and would attract punitive action.
ERB has noted with concern the increased number of illegal fuel vending activities especially in border towns. The public has been cautioned that petroleum products are highly hazardous and flammable, which if not handled with care could claim lives.
It should be noted that illegal fuel vendors are not licensed by any government institution. This renders their business illegal! In addition, Government is deprived of taxes from such activities which is ultimately theft of national resources.
The dangers posed by fuel bought from illegal source far outweigh any perceived benefit. Motorists are therefore strongly advised to avoid buying fuel from illegal vendors as it is costly to them in the long run.
The public is advised to be vigilant and report suspected cases of illegal fuel vending to the nearest police station or the ERB on toll free line 8484.