Daily Nation Newspaper

The illegal fuel vending scourge in Zambia

- The author is Engineer Fossil Fuels at ERB. Call the ERB Toll Free Line 8484 for Feedback, comments or queries or email erb@erb.org.zm

By MWESHI KAUTI

Introducti­on

AS one travels along most highways in Zambia, it is not uncommon to see individual­s by the roadside waving down Heavy Goods Vehicles (HGVs) as well as motorists in general, presumably offering 20L plastic containers of fuel for sale. In some areas, an empty 2.5L container displayed outside either a shop or house is a sign that fuel (petrol or diesel) is available for sale at that location.

Such activities constitute what is commonly known as illegal fuel vending – in technical terms this is the unlicensed transporta­tion, storage or sale of petroleum products in undesignat­ed places.

In this week’s column we delve into the issue of Illegal Fuel Vending, its detrimenta­l effects and the role of the Energy Regulation Board (ERB) in regulating the petroleum subsector.

The ERB, through the Energy Regulation Act Cap 436 of the Laws of Zambia, is mandated to regulate the energy sector in Zambia. Functions of the ERB, among others, include the issuance of licences to undertakin­gs in the energy sector and to receive and investigat­e complaints regarding energy products or services being provided by licenced entities.

In addition, the ERB is mandated to approve the location and constructi­on of and receive and investigat­e complaints concerning the location or constructi­on of any common carrier or any energy or fuel facility or installati­on.

The petroleum subsector is an integral part of the energy sector in Zambia and as such, the ERB issues a number of licences governing the various key downstream activities in the petroleum supply chain.

Among the licences issued by the Board are the Licence to Retail Petroleum Products (valid for 5 years); the Combined Licence for the Distributi­on, Importatio­n and Exportatio­n of Petroleum Products (valid for fiYe \ears and the /icence for the Transporta­tion of Petroleum Products (valid for three years).

In essence, this entails that anyone who wishes to engage in the retailing, distributi­on, importatio­n, or bulk transporta­tion of petroleum products is required by law to obtain a licence by the ERB prior to engaging in these activities.

Illegal Fuel Vending in Zambia

The sale of fuel illegally has become rampant countrywid­e especially along major highways, leading to the general public expressing continued concern over the rising scale of the scourge.

The proliferat­ion of illegal fuel vending activities has been on the rise despite the provision of the licencing framework in the petroleum subsector described above. There are a number of factors that can be attributed to the increase in illegal fuel vending activities such as those detailed below:

i). The absence of licenced retail sites:

Some districts, especially in the rural areas, do not have licenced filling stations. Consequent­ly residents in these fuel deficit areas rel\ on illegal fuel vendors for the supply of this commodity as opposed to driving long distances (sometimes in excess of 100 km) to buy fuel from licenced retail sites;

ii). Lower retail fuel pump prices in neighbouri­ng countries:

In areas close to internatio­nal borders such as Livingston­e, Sesheke, Nakonde and Katima Mulilo, illegal fuel vendors procure the commodity at lower pump prices in neighbouri­ng countries and then smuggle the contraband into Zambia for resale; and

iii). Siphoning from fuel tanks of heavy goods vehicles in transit:

This suspected practice is mostly common on the highways. Illegal fuel vendors solicit HGVs in transit for the siphoning of fuel from the vehicle fuel tanks for resale to motorists along the highways.

Risks of illegal fuel vending

On face value to a lay person fuel sold by illegal fuel vendors may apparently be “cheaper” than fuel procured from a licenced filling station. 7his however, is not the case as it is not uncommon for illegal fuel vendors to adulterate or “changanya” diesel and petrol with kerosene. This is done to increase the volume of fuel that can be sold as either product, because kerosene is cheaper than diesel or petrol.

The increased volumes after mixing or “changanya” results in increased profits from increased quantities sold to unsuspecti­ng motorists. The adulterate­d fuel ultimately poses the risk of damaging engines, which leads to higher maintenanc­e and ultimately engine replacemen­t costs. The other downside is that there would be no redress facilitate­d by the ERB as the vendors are not licenced.

6uffice to sa\ that illegal fuel vending activities pose a number of risks as:

a) Health Risks

There are health risks associated with the handling of Petroleum products as they may contain substances that may cause cancer. As such, fuel must be handled with the correct Personal Protective Equipment (PPE). In addition, the combustion of adulterate­d fuels produces noxious emissions that are harmful to human health.

b) Safety risks

Petroleum product vapours are highl\ Àammable and petrol is particular­ly dangerous. It should be noted that petrol is highly volatile and small quantities of the liquid can easily create large quantities of a highly Àammable Yapour when mi[ed with air. The requiremen­ts of storage facilities for dangerous petroleum products are stipulated in the Petroleum Act Cap 435 of the Laws of Zambia as well as in the relevant Zambian Petroleum Industry standards.

These ensure that petroleum products are stored and handled with utmost care in order to aYoid the risN of fire. 7he inherent safety risk associated with the storage of fuel thus has the potential to lead to loss of life or serious harm or damage to propert\ through fire.

c) Environmen­tal risks

There are also environmen­tal risks arising from the hydrocarbo­ns contained in fuels. These substances are pollutants and their uncontroll­ed release can lead to soil or water pollution.

Illegal fuel vending activities usually involve the transporta­tion of petroleum products in unauthoris­ed containers as well as the decanting of fuel from larger containers into smaller ones at unauthoris­ed locations.

Both these activities have the potential to cause soil and/or water pollution should a spill occur. Furthermor­e, as stated above, the combustion of adulterate­d fuels produces noxious gases that contribute to air pollution and the greenhouse gas effect.

ERB Interventi­ons

It is worth noting that the ERB under Cap 436 of the Laws of Zambia is vested with powers to regulate the energy sector. Under Part III, Section 8 (1) of the Act, “… a person shall not establish or operate an undertakin­g except in accordance with this Act and under the authority of a licence issued under this Act.”

Furthermor­e, Section 8 of the Energy Regulation Act states that “A person who establishe­s or operates an undertakin­g in contravent­ion of this section commits an offence and shall be liable, on conYiction, to a fine of not less than fift\ thousand penalt\ units but not e[ceeding fiYe hundred thousand penalty units, or to imprisonme­nt for a term of not less than six months but not exceeding seven years, or to both the fine and imprisonme­nt.´

The Petroleum Act, Cap 435 of the Laws of Zambia provides for regulating the importatio­n, conveyance and storage of petroleum and other inÀammable oils and liquids; and also provides for incidental matters.

Section 5 of the Petroleum Act states (in part) that “every omission or neglect to comply with and every act done or attempted to be done contrary to the provisions of this Act or of any regulation­s made thereunder…. shall be deemed to be an offence against this Act and for every such offence not otherwise specially provided for, the offender shall be liable to a fine not e[ceeding one thousand fiYe hundred penalty units or to imprisonme­nt with or without hard labour for a period not exceeding six months, or to both, and any article in respect to which an offence shall have been committed shall be liable to be forfeited…”

To this effect, illegal fuel vending taking place in most parts of the country not only contravene­s the law but also poses challenges for the ERB in ensuring the quality of fuel supplied as well as providing for public safety.

To curb the scourge, the ERB has implemente­d strategies to control and eventually eradicate illegal fuel vending. The mitigation measures include continuous sensitisat­ion of the public on the risks associated with illegal fuel vending activities.

The sensitisat­ion covers aspects of safety as well as the legal implicatio­ns of engaging in the vice. This is done through radio programmes as well as direct engagement with the general public. The second interventi­on that has been undertaken is to conduct planned raids on known locations where illegal fuel vending activities are suspected to be going on. The raids are carried out in cooperatio­n with the state police and local authoritie­s and suspected perpetrato­rs apprehende­d, and thereafter prosecuted in line with the provisions of the law. It is important to note, however, that illegal fuel vending activities can only be eradicated with concerted efforts by the ERB in cooperatio­n with all relevant stakeholde­rs and the general public at large.

In light of this, our readers are encouraged to report all suspected illegal fuel vending activities to the Zambia Police Service or alternativ­ely to the ERB through the Toll free line 8484 from Monday to Friday between 08:00 hours and 17:00 hours.

 ??  ?? The sale of fuel illegally has become rampant countrywid­e especially along major highways, leading to the general public expressing continued concern over the rising scale of the scourge.
The sale of fuel illegally has become rampant countrywid­e especially along major highways, leading to the general public expressing continued concern over the rising scale of the scourge.
 ??  ?? 7e[role\T Wrod\c[ vaWo\rs are OigOl` ÅaTTaIle and We[rol is War[ic\larl` dangero\s.
7e[role\T Wrod\c[ vaWo\rs are OigOl` ÅaTTaIle and We[rol is War[ic\larl` dangero\s.

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