Tuesday, 15 June, 2021

Fuel is categorized as dangerous and flammable goods due to the nature of the goods can cause explosion, fire, poisoning, high temperatures, or the effects of corrosion.

Dangerous goods are classified based on class, the most significant risk and impact on health that has a short-term or long-term risk, and a physical impact on the objects or people. One of Fuel characteristics is evaporation.

Evaporation is one of the factors that contribute to fuel loss in the storage tank or during product movement, such as: discharging, loading, intertank transfer.

Loss & gain is one of the challenges in fuel management.

Before continuing, let's equate the perception of loss & gain numbers obtained. To find out the results, there are some data that must be available. In this case, we try determining the loss & gain during fuel in the storage tank. The simple calculation as follows:

The available stock, plus receiving and minus throughput, the result will be the stock available based on the calculation or "Book Stock". Comparing the "Book Stock" vs "Actual Stock", it will be resulted number of loss & gain. The percentage of it for each company may be various according to the reference standards, either locally or internationally.

Other factors that cause loss are:

Inaccurate measurement of actual fuel volume.

Incorrect fuel calculation conversion 

Leak from the facilities


Thief / fraud

Fuel Loss & Gain Control

People. Loss & Gain can be controlled to not exceed the tolerance percentage. In its handling, fuel cannot be separated from the operational team responsibility which includes receiving process, loading to the transportation media such as trucks, barges, tankers, rail tank wagon or intertank transfer process. Therefore, only a trained operational team is required to handle it, so that the risks that may occur from the process such as: inaccurate measurements, miscalculations and fuel spills caused by incorrectly operating equipment can be avoided.

Equipment. Standard, calibrated equipment will affect on the results of the fuel inspection and measurement. Maintenance schedules for equipment and facilities to prevent malfunctions shall be in place and consistently carried out. Equipment and Facilities will not immediately experience malfunctions, but there is a degradation process that occurs as an early sign. With the availability of a schedule and consistency in maintenance, it will detect early signs of degradation so that appropriate action can be taken to avoid major issues.

Operation Control. Fuel handling must be based on proper procedures by considering the effectiveness, efficient, productivity, while still guided by Health, Safety, Security & Environment. The Operations Team is responsible for maintaining fuel stock from fraud or theft.

Loss Investigation

Analyze daily stock report to ensure fuel loss & gain does not exceed a predetermined tolerance percentage. Investigation is required if there is a discrepancy in the report.

Broadly speaking, the factors that cause loss can be identified from their characteristics, such as:

Leak on fuel facilities. Daily stock reports experience patterned losses, starting with small numbers, then gradually the loss numbers increasing, it depends on the facility's ability to withstand the load and pressure of the fuel. Performing inspections at monitoring wells, leaking fuel will be detected early at this facility.

Measuring Equipment Accuracy. The loss pattern will be almost the same as the leak in the storage tank. Re-checking to ensure the accuracy of the measurement can be done internally by manual or digital.

Fuel Spill. Could have an impact on a huge number of losses, but the volume can be estimated. The focus is to minimize the impact of pollution on the environment by closing the flow, localizing the spill, and cleaning the area.

Thief / fraud. The report reads a regular loss or one-time loss pattern. Verify all measurement reports, calculations, volume conversions, if needed, repeat the process. In some cases, the theft most likely involves internal party and group. Check all valves in the fuel lines, if there are signs of damage to the facilities, the possibility of theft is carried out by the external parties.

A comprehensive investigation is required to find out the root causes of losses that exceed the tolerance.

Nowadays, the technology keeps improving, this allowing fuel loss controllable. Real Time data could detect loss patterns so that it can be estimated the total loss that will occur in one day, even every hour. So that the investigation after the event of fuel loss can be minimized since it will be difficult.

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