The illegal fuel vending scourge in Zambia
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.