Strategy

Strategy

The fuel marking process started on..


The fuel marking process started on February 1, 2014, and this task was entrusted to consortium of companies: „SGS“, "Authentix", and "Nanoinspekt". The team comprised of experts of these three companies, through the fuel authentication (marking) program, secures that we use quality fuel and that, by preventing the adulteration of the oil with other illegal substances, we directly guarantee its quality. The prevention of illegal trade of oil derivatives directly leads to a state’s budget savings that could count to estimated tens of millions of euros. In addition to the state, benefits from the program have drivers who now poured fuel of legal origin but also sellers who no longer have unfair competition in the market

• Unpaid import taxes and excises revenue loss reimbursement
• Comprehensive control of all the processes regarding manipulation of oil derivatives
• Successful tracking of oil derivative turnover legality

• Greater confidence in the quality of fuel
• Smanjena potrošnja goriva
• Reduced fuel consumption
• Savings on servicing costs
• Reduced insurance costs
• Increased durability of vehicle warranties
• Lower gas emission

• Increased sales and income
• Positive effect on brand quality
• Possibility of greater brand investment

• Elimination of unfair competition from the market
• Possibility of investment in the field of quality service improvement

Tradition of illegal trade in Serbia dates back to the time when usual supply methods were not possible. Not even today, when market supply exists, fuel of promised quality does not reach the final consumers. Part of the fuel still reaches gas stations through illegal channels and sellers do not pay prescribed duties for it, and consumers often get gasoline and diesel with kerosene added, eurodiesel with heating oils or gas oils, BMB-98 mixed with BMB-95...NIS Gazprom company, in cooperation with world leader in field of products protection, Authentix Company, implemented pilot project.

Project „Identification and verification of fuel authenticity, experimental phase – markers testing“ was intended to show if marking of fuel, produced by “Authentix” company, enables and ensures efficient control of market flows, in terms of market liberalization, as well as combating of illegal activities on the motor fuel market of the Republic of Serbia .

According to data published by the Ministry of Energy, in Serbia, between 5%-10% of total quantity of fuel is sold illegally, meaning that both VAT and excise duties are not paid for that, while customers are charged the regular price. Fuel marking will prevent the marketing and trading in fuel that is not marked in defined and prescribed manner. That is, according to the Ministry of Energy, should increase budget revenues by about EUR 40 million in the first year, but this figure is significantly exceeded only after six months of the program.

First results show drastic fall in import of basic oil, increased trade in diesel fuel, sales growth of fuel on retail outlets – oil stations, as well as additional income from excise duties and VAT duties in state budget.

The abovementioned approach to solutions provides us with significant advantage over the competition, having in mind that, in this way, continuous project management is performed through risk management, real environment changes, and team education.

In addition to National Organization of Consumers of Serbia, program was supported by the Ministry of Mining and Energy of the Republic of Serbia, Association of Oil Companies of Serbia, oil companies, and many other partners.