GEA records increase in fuel seizure

GUYANA Energy Agency (GEA) has registered a 76 per cent increase in fuel seizure. For the first six months of 2015, the Guyana Energy Agency’s (GEA) Fuel Marking Division seized 6,200 gallons of fuel, but while the amount seized for the same period this year has increased by 75 per cent, the number of confirmed incidents for the year stands at 15 – a decrease from 22 last year.“The quantity of fuel seized increased greatly following two large seizures in the Mahaica and Pomeroon areas,” GEA explained in a press statement on Monday.

Investigations into these matters are still ongoing.

For the period under review, a total of seven charges for the offence of possession of illegal fuel were instituted, representing an increase in the total number of charges filed for the previous year where only five were instituted.

As at June 30, 2016, six prosecutions were engaging the Courts.

It was also noted that for the period January to June 2016, the division marked 107 shipments of fuel legally imported. Additionally, the inspection unit has exceeded the number of sites visited and samples collected, when compared to the same period last year.

“The agency’s laboratory analysed a total of 23,251 samples for the first half of this year, as compared with 20,926 for the same period last year. Results of the analysis indicate that while more samples are being taken and tested in the laboratory, the amount of significant dilution of the fuel marker remains under three per cent. This is a testament to the effectiveness of programme as from its inception this has decreased from 34 per cent in 2006,” the energy agency pointed out.

The GEA said the inspectorate, using strategic sampling and monitoring activities and maintaining a permanent presence in Regions Two, Seven and 10, continues to effectively discharge its duties, greatly aiding in the curbing of the scourge of fuel smuggling.

The work of the division is complemented by the support of sister agencies on the Task Force on Fuel Smuggling and Contraband which comprises the Guyana Police Force, the Guyana Defence Force’s Coast Guard, the Guyana Revenue Authority and the Customs and Anti-Narcotics Unit.

For the year, 16 joint operations were conducted with the various agencies.

Recognising the need to resolve incidents without reverting to sometimes lengthy legal proceedings while maintaining a punitive element in determination, the GEA continues to accept compensation from offenders in accordance with the Act. For the first half of the year, the sum of $1,214,500 has been accepted in three incidents as compensation, exceeding the quantum received the previous year. This sum, as mandated by statute, is paid into the Consolidated Fund.

“The Fuel Marking Division has always striven to execute its mandate in an effective, efficient and equitable manner. The task of maintaining an effective programme, however, requires the assistance of members of the public. If you have information or knowledge of suspected fuel smuggling activities, please do not hesitate to contact the Guyana Energy Agency on 226-4424, ext 239, 204, 227 or 629 3391,” the GEA said.

The Marking Division was made a part of the GEA in 2003 following an assessment of taxation losses being incurred in the country as a result of fuel smuggling. Fuel smuggling refers to the importation and distribution of petroleum and petroleum products, particularly petrol (gasoline) and diesel, by both legitimate and illegitimate businesses without the necessary taxes having been paid.

With this illicit trade estimated to have been accounting for one-third of the fuel imports of the country, the Government sought to implement fuel marking and testing services so that a definitive means could be found by which illegally imported fuel could be identified and persons found dealing with same could be prosecuted. Authentix (then called Biocode), an external company, was contracted to and still provides and supports the marking and testing services while the Guyana Energy Agency Act was amended to provide the legislative framework for the marking, testing and enforcement arms of the programme.

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