Local Governments Commit to Curbing Fuel Fraud and Reducing Fuel Expenditure

The thousands of cars, bakkies, trucks and lawn mowing equipment used by local and provincial governments to serve the public require a substantial amount of fuel. Not only is this costly, but the refuelling process has been known to be subject to manipulation and abuse. As a result, a number of municipalities as well as many national government departments have implemented an effective fuel management system, called “eFuel”, to curb fuel fraud risk, reduce fuel expenditure and enhance efficiencies. A large portion of the Eskom Distribution fleet also utilizes the system.

Supplied by South Africa’s premier fuel management solutions specialists AFS Group, the fully automated “eFuel” system utilises technology that enables the vehicle, and not the driver, to authorize and pay for fuel transactions.

Each municipal vehicle is fitted with a unique electronic identification chip which, when read by a sensor fitted to the nozzle on the fuel pump, verifies that the vehicle is authorised to receive fuel. This not only ensures that the correct vehicle is refuelled with the correct fuel type but also reduces the potential for fuel theft and human error. In addition, once refuelling is complete, data such as transaction date and time, volume, value, vehicle registration and odometer reading is transmitted to AFS’ back-office bureau where reports are generated for the relevant personnel.

While the AFS Group supplies automated refuelling solutions for fleets that refuel at both home base depots and on-road service stations, the company has encouraged many public sector fleets to rationalize their home base infrastructure and move toward on-road fuelling. Municipal supply chain management policies state “the storage of goods in bulk, including fuel, should be avoided wherever possible”. The risk of theft, abuse and loss of fuel on a home base sites is much greater than if the fleet is procuring fuel from on-road service stations. In addition, fuel stored in these sites can pose an environmental threat, as these containers can rust and erode, resulting in fuel leakages. AFS Group recognises that at some of the larger Municipalities strategic home base sites are necessary to be retained. AFS Group proposes that any home bases retained must be automated so that the vehicle itself is the method of authorizing the fuel transaction, electronic reporting can be generated and so that transactional information from home base sites and retail service stations can be merged and consolidated into one meaningful fuel transaction report.

The City of Cape Town is one of many of the eFuel success stories. Previously, the fleet of approximately 5500 vehicles refuelled at over 60 home bases across the city. Since AFS’ initial contract in 2005, over 90% of the fleet now refuels on road and only six strategic home base sites (which are now completely automated) remain. The fuel management company also utilises AFS Group’s cutting edge electronic tank monitoring technology at these sites to accurately measure stock levels for wetstock reconciliations as well as to detect the presence of water and leaks ensuring environmental risk and product loss are kept to an absolute minimum.

According to City of Cape Town Manager of Fleet and Mechanical Workshops, James Groep, “We have found a marked decrease in the City’s fuel consumption after the implementation of the eFuel system”.

AFS Group’s expertise in this regard has been utilised by several municipalities and has even resulted in the elimination of home base refuelling altogether in certain areas. Municipalities such as The City of Johannesburg, Oudtshorn, Knysna, Bitou and Rustenburg municipalities have reported benefits such as 24 hour refuelling convenience for drivers, secure automated  refuelling processes with no human intervention, meaning fuel management reporting and the ability to set parameters on certain vehicles and blacklisting of vehicles to prevent them from being refuelled fraudulently. One of South Africa's leading providers of fleet management solutions, Fleet Africa, says “Our client, The City of Johannesburg is fitted with the eFuel automated refuelling system and this system has ensured maximum controls over their refuelling processes”.

For more information about eFuel and AFS Group’s other fuel management solutions, please visit ww.efuel.info or www.afsgroup.co.za.