Fuel marking will invariably generate more additional tax collection than the cost of the program

FMI typically facilitates the initial investment as well as the knowledge, skills, experience and technology that are required. The operational costs after mobilisation are typically paid by the oil marketing companies through a long term contractual arrangement facilitated by the government. Fuel marking will invariably generate more additional tax collection than the cost of the program, thereby resulting in it being a self-funding initiative, usually to the order of 5 to 10 times return. According to studies, the world average of lost fuel taxes is currently estimated to be about 15%. The government’s tax under-recovery is the financial opportunity from implementing the solution.