The threat of fuel theft and how to combat it

Photo: © Bristolviewfinder | Dreamstime.com

Freight crime continues to present a major challenge to the supply chain industry.  Perhaps the largest subset of theft incidents involve fuel.  Here TT Club’s Mike Yarwood analyses the claims data of the freight industry’s insurance provider to help throw light on the details of the trend.

The analysis puts cargo theft among the top three of incidents resulting in claims.  However, the data fails to capture the full scope of the problem, as the value of the loss often falls below policy deductibles and are therefore never reported as an insurance claim.

To shed further light on the situation, in the UK the National Vehicle Crime Intelligence Service (NaVCIS) Freight maintains a unique freight crime database, recording data on all freight crime reports received from the 43 national police forces. Analysis of over 5,000 incidents in 2023 has revealed that the most stolen commodity was fuel.

In 2023, 1,733 offences accounted for over £2m ($2.5m) of fuel stolen from freight vehicles. This accounted for 32% of stolen commodities overall. Although theft of fuel bunkered at transport facilities is a concern, this article will focus on theft of fuel from vehicles during transportation.

As inflation has driven up the cost of living, fuel prices have risen and remain high. High prices have, in turn, incentivised theft of a variable commodity. Traditional market forces drive the emergence of shadow markets where buyers seek alternative, cheaper sources of essential commodities such as fuel. A long-haul truck may have two 500-litre tanks, making it a tempting target for thieves.  Unlike consumer goods, which have barcodes and serial numbers, stolen diesel is very difficult to trace. It can be decanted and moved through the supply chain quickly, after which it is sold to willing buyers and consumed.

As businesses and transport operators have grappled with this problem, technological solutions have proliferated. Anti-syphon solutions are in common use in the industry, which prevent the syphoning of fuel. However, criminals have adapted, and now commonly resort to drilling or otherwise puncturing the fuel tank to access the fuel.

Such tactics compound the problem. Not only is the fuel stolen, but damaged vehicles must also be repaired. If the driver is unaware of the theft and attempts to start the vehicle engine, this may lead to costly damage to the engine of the vehicle in addition to the damage from the attack to the fuel tank itself and replacement of the fuel.

Often such thefts happen while the vehicle is parked during statutory breaks. This leads to significant delays, since the load cannot be delivered until the vehicle is repaired or a replacement vehicle is sent to collect the load. This costs the business in terms of driver hours wasted, the potential cost of rebooking a failed load, as well as reputational damage.

In addition to the disruption caused by fuel theft incidents, there may also be a risk to the environment. Spillage of fuel during theft incidents is not uncommon, particularly in cases where thieves are interrupted after puncturing a tank. Such events may require the transport operator to arrange for costly clean-up of environmentally hazardous diesel.

As with other forms of freight crime, trucks at rest are at risk. Where vehicles must stop, operators are highly advised to make use of safe and secure parking locations. TT continues its mission to encourage increased security measures at truck parking facilities, which undoubtedly provide greater deterrence to criminals, whether their target is cargo or fuel. Unfortunately, truly secure truck parking facilities remain scarce, providing ample opportunity for criminals to strike. The greatest vulnerability occurs when trucks are parked for extended periods at the roadside or on industrial estates, and transport operators and drivers are strongly advised to avoid parking in such locations.

To help mitigate the problem recommended loss prevention strategies include:

•  use of anti-fuel siphoning devices;

•  use of fuel tank alarms;

•  a fuel management system, to detect any skimming of fuel or fuel thefts;

•  defensive parking – park in a way that blocks or shields access to fuel tank;

•  defensive parking – park in a way to ensure the fuel tank is visible to passing traffic or members of the public to expose any fuel thieves.

Fuel theft has become increasingly common throughout the supply chain as diesel prices have risen and remained high. Despite the risk of damage, it is nonetheless advisable for operators to consider deploying anti-siphon technology and lockable fuel caps as deterrents.

Most importantly, controlling parking locations as much as reasonably practicable, and avoiding parking at the roadside and on industrial estates, will help mitigate exposure to this risk. Such losses are often uninsured and will impact the operator’s bottom line, emphasising the importance of considering available counter-measures and strategies.