Understanding Fuel Theft in Logistics

It seems that the throne of internal combustion engine (ICE) vehicles will be shaken by electric vehicles in the near future. However, we will keep seeing ICE vehicles on the road for longer than we think. In that case, fuel will remain one of the most important energy resources. Even though oil prices decreased due to the COVID-19 pandemic, they are currently increasing drastically because of unexpected political developments worldwide.

As the biggest budget item in logistics, fuel is becoming increasingly vulnerable to theft. Fuel theft is one of the most frustrating problems for both logistics companies and vehicle owners in the transportation business. Fuel theft can be examined under two main categories:

Fuel Theft from Internal Sources

This type of theft is mostly linked to employees. Some drivers are reported to steal fuel from vehicles under their responsibility in various ways, such as transferring a small portion of fuel every day, which makes it difficult to detect. Consider a truck with 30 L/100 km fuel consumption and 500 km daily mileage: 20–25 liters of fuel stolen from the tank daily will only increase average fuel consumption by couple of liters. This is one of the most insidious and dangerous types of theft for a company because it creates a huge long-term loss and is very hard to detect.

On the other hand, some drivers focus on using the truck as efficiently as possible and consume less fuel than agreed with the company. Afterwards, they claim the right to the amount of fuel saved, sell it, and may not consider this “theft.” Although some logistics companies don’t care what happens to fuel as long as their drivers don’t exceed the agreed consumption level, that is not a healthy business practice.

Fuel Theft from External Sources

Both private truck owners and logistics companies can be exposed to this type of fuel theft. High fuel prices and heavy commercial vehicles with large tank capacities—ranging from 400 to 1,100 L—whet the appetite of thieves. Thieves can quickly remove the tank cap with special tools and empty the fuel in the tank within minutes with the help of a pump.

There is a saying: the lock does not withstand the thief. However, we believe fuel theft no longer needs to be a problem, especially with smart, high-technology solutions. Fleet managers should use smart systems such as our Trak Smart Fuel Cap to monitor their vehicles’ fuel security. For example, commercial vehicle camera surveillance companies can integrate the Smart Fuel Cap into their systems and activate live streaming when there is unauthorized access to the fuel cap. Telematics Service Providers can offer the Smart Fuel Cap as a value-added security solution to their customers.

Increasing penalties against fuel theft through legal arrangements and providing deterrence by applying serious penalties to businesses or individuals who trade in stolen fuel can also provide important benefits in combating fuel theft.

What should you do to improve your vehicle's fuel security?

You can improve precautions by integrating fuel consumption assessment and considering the factors mentioned throughout this article. You can also consider investing in our fuel security solution, Trak Smart Fuel Cap, to stay one step ahead in protecting your vehicle’s fuel security.