The oil marking process in Mozambique started last year on 1 August and is being run both by the Ministry of Energy and Mineral Resources and the Tax Authority, to solve the problem of oil adulteration that was causing harm to the environment and vehicle performance, on the one hand, and the loss of fiscal revenues due to transit oil smuggling into the domestic market, on the other.
While the Ministry guarantees a better oil quality to consumers and has the authority to define the mechanism of control of commercialised oil product characteristics – which must be done through a system that allows the systematic verification of oil products in all marketing stages – the Tax Authority looks after revenue collection and is responsible for the implementation of anti-smuggling measures.
To better assess the situation, prior to the programme, a pilot project was held in Beira, which revealed that kerosene was being used to adulterate diesel and that the country was losing roughly $40,322,580.00 per year.
So, it is the objective of this paper to present the Mozambique experience in oil marking and how the expectancies of efficiency in oil quality control and revenue collection were achieved.
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