Fraud in the petroleum business is increasingly sophisticated.

Sophisticated tricks

In recent days, consumers across the country, especially in Nghe An, have been confused by the news that the Ministry of Public Security has coordinated with Dak Nong Provincial Police to destroy a fake gasoline production and trading ring of tycoon Trinh Suong (residing in Soc Trang) and his accomplices.

Initial investigation results determined that the subjects mixed solvents into poor quality gasoline, added RON boosters and colorants to create fake E5 RON 92 and RON 95 gasoline. The police seized 3,264,281 liters of various solutions (including 2,183,604 liters of mixed mixture to create fake gasoline; 432,474 liters of unmixed solvents; 250,000 liters of solution; 50 kg of colorants...).

The gasoline samples sold by tycoon Trinh Suong were discovered to be fake.

It is worth mentioning that over the past many years, a large amount of fake gasoline has been smuggled into the market of many provinces and cities, including Nghe An and Ha Tinh.

In fact, it was not only the case involving Trinh Suong that made consumers in Nghe An worry about the quality of gasoline, but over the years, authorities have uncovered many cases of poor quality gasoline trading.

Most recently, on March 18, the Department of Science and Technology Inspectorate conducted a surprise inspection of the Binh Trinh petrol station, located in Son Tay hamlet, Nghia Son commune, Nghia Dan district. At the time of the inspection, the station was selling 3 types of petrol, including RON 95, E5 RON 92 and diesel.

Binh Trinh petrol station - where poor quality E5 RON 92 petrol is sold. Photo: PB

After testing 3 gasoline samples, the inspection team discovered that this facility had 6,600 liters of E5 RON 92 gasoline that did not meet technical standards, specifically the ethanol content in gasoline was lower than the prescribed level. This facility was then fined more than 232 million VND by the Provincial People's Committee and had its operating license revoked for 1 month.

As one of the people who have participated in many cases of "catching" poor quality gasoline for many years, Mr. Nguyen Manh Ha - Chief Inspector of the Department of Science and Technology said that the fraud in the petroleum business is increasingly sophisticated and difficult to detect. Fraudulent acts are mainly related to the measurement and quality of gasoline sold on the market.

"In the past, when it came to quality fraud, petroleum businesses often mixed kerosene into gasoline; then mixed in low-quality gasoline, and went one step further by mixing in solvents into the gasoline when selling to customers. In the case in Dak Nong, these subjects were even more sophisticated, adding RON boosters and colorants, making it very difficult for people to detect that it was fake gasoline," said Mr. Ha.

The owner of Binh Trinh petrol business admitted to the inspection team that he bought poor quality petrol to sell. Photo: PB

Sharing the same view, Ms. Thai Thi Hong Lien - Deputy Head of the Department of Standards - Measurement - Quality said that petroleum is a special commodity, greatly affecting the economic and social life, directly affecting the interests of each individual. Fraudulent tricks in the petroleum business are increasingly sophisticated and complicated.

With fraudulent acts, petrol business owners can illegally profit a large amount of money over a long period of time, causing economic damage to consumers, leading to many other serious consequences regarding vehicle safety, environmental pollution, etc.

“It must also be admitted that fuel fraud schemes always appear and are ahead of the detection and handling by the authorities. Because of that, until these violations are detected and handled, consumers must bear all the consequences.”

Thai Thi Hong Lien - Deputy Head of the Department of Standards - Metrology - Quality

Difficult but must do

It can be said that Nghe An is the pioneering locality in the country to detect and catch many fraudulent tricks in the petroleum business. Regarding the trick of mixing solvents into gasoline, the solvent purchase contract between these establishments and subjects in Can Tho was made from January 2017, which proves that the fraudulent behavior was carried out over a long period of time.

If Nghe An does not detect this to create a premise for the whole country to fight and prevent it, consumers across the country in general and consumers in Nghe An in particular will continue to suffer the serious consequences of the above deceitful tricks.

Coloring chemicals mixed into gasoline for fraudulent purposes were discovered by authorities in Nghe An province in 2017.

"Nghe An detecting and handling many such establishments does not mean that the state management is poor and there are more violators than other provinces. Fraudulent measurement of gasoline is a common phenomenon nationwide, but Nghe An is a province that is meticulous, detecting early types of fraud to inspect and handle seriously," Ms. Thai Thi Hong Lien added.

Colonel Nguyen Huu Cau - Director of Nghe An Provincial Police Department said that the methods of those producing fake gasoline are very sophisticated. To arrest and handle criminal law, they must be caught red-handed, and if caught in the process of transport, even if there is an inspection, they will only be fined for administrative violations of trading in goods that do not ensure quality.

“To catch such subjects in the act, a special project must be established, which takes a lot of time; in addition to the police force, it requires very good coordination between the science and technology sector in gasoline quality assessment and market management to catch subjects in the act of mixing. From there, we can expand and check the books and documents of the purchase and sale of chemicals and gasoline…”

Colonel Nguyen Huu Cau - Director of Nghe An Police

The more volatile the price of gasoline, the more sophisticated and widespread the fraudulent business methods to make illegal profits will be. These methods often appear with new measuring devices and equipment. In addition to the strong coordination of functional agencies and local authorities, people need to create strong social pressure to boycott businesses that sell poor quality gasoline.

It can be said that the vigilance of consumers is the highest deterrent penalty for violating establishments. At the same time, the list and methods of violations of retail establishments must also be provided to the general agents of petroleum in the area, so that the general agents can take measures to handle these establishments according to the economic contract signed by both parties, such as fines, contract termination, etc.

- In 2008, Nghe An discovered and handled many establishments that installed auxiliary measuring circuits running parallel to the main measuring circuit, using switches to adjust errors in favor of the seller.

Inspecting 145 petroleum business establishments, Nghe An province's functional sector discovered and handled 32 establishments for violations, imposing administrative fines of VND315 million; 36 establishments had their inspection certificates revoked, and 45 measuring instruments were forced to be re-inspected.

- In 2014, Nghe An was the first locality in the country to detect and strictly handle fraudulent behavior of petroleum businesses by influencing or replacing program ICs to adjust measuring device errors exceeding the allowable level.

Inspecting 51 petroleum business establishments, the authorities discovered 23 establishments violating the law and imposed administrative fines of nearly 1.4 billion VND. Regarding the IC production and trading ring to commit fraud in the petroleum business, 8 subjects were criminally prosecuted with sentences ranging from 7 months of suspended imprisonment to 24 months of imprisonment.

- In October 2017, Nghe An Provincial Police coordinated with the Department of Science and Technology to crack down on the X917-XD case and seized 42,000 liters of solvent, 22,000 liters of mixed gasoline and 3 bottles of colorants. The team took 12 samples for testing and the results showed that 11 samples did not meet the quality standards, the unsatisfactory index was the octane index.