SGS Beograde Awarded Fuel Integrity Program Contract by Republic of Serbia
In July 2013, a consortium established by SGS Beograde (comprising SGS, Authentix, and NanoInspekt) was awarded a Fuel Integrity Program contract by the Ministry of Energy, Development and Environmental Protection of the Republic of Serbia.
SGS and Authentix designed the program to assist the Ministry’s efforts to curb the illegal fuel trade and ensure that only fuel meeting published specifications enters the market, enabling the government to protect the public interest.
The initial estimate made by the Ministry was that between 5 and 10 percent of the fuel sold in Serbia was illegally diluted with inferior products and adulterants, significantly impacting the quality of the products. These inferior products reduce vehicle fuel economy, have the potential to damage consumers’ vehicles and contribute to air pollution. In addition, the illicit trade of adulterated products deprives the government from collecting the correct amount of taxes, resulting in estimated losses of approximately EUR 40 million annually.
In the five months since program’s inception, the Deputy Prime Minister Zorana Mihajlovic, on behalf of the Government of Serbia, was pleased to announce that the Program has already achieved significant benefits. For example, it has helped achieve the highest tax revenues ever recorded and an increase of approximately 46 percent. Plus, growth in the sale of diesel and gasoline was 13.9 percent and 18 percent, respectively.
The Government anticipates after 12 months, program benefits will include a 50 percent increase in excise taxes to EUR 60 million. As a result, in September 2014, the Government has requested SGS and Authentix to extend the program scope to include LPG.
For further information, please contact:
Global Manager, Fuel Integrity Programmes
Oil, Gas & Chemicals
SGS Laroute S.A.
t: +41 41 727 1900
f: +41 41 712 1918
About Authentix Inc.
Authentix enables brand owners and governments to build market confidence and maximize revenue by authenticating products to combat counterfeiting, protect brand equity and assure program integrity. The company serves clients in the oil and gas, currency, tax stamp, and branded product markets with leading product authentication solutions wrapped in robust programs to deliver meaningful business outcomes that contribute to their client’s success. Headquartered in Dallas, Texas USA, Authentix has offices in the US, UK, Africa and the UAE serving clients worldwide. For more information visit Authentix.com.
SGS is the world’s leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 80,000 employees, SGS operates a network of over 1,650 offices and laboratories around the world.