In a war against the activities of fuel mafias, the government of São Paulo is considering implementing technology to track the liquid itself (gasoline, alcohol, and diesel) to increase revenue and uncover distribution schemes by companies linked to organized crime, such as the PCC.
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10% of the Market
Estimates from distributors indicate that the PCC already controls 10% of fuel distribution in São Paulo.
State Governor’s Proposal
People who discussed the idea with Governor Tarcísio de Freitas say that the proposal is to force distributors to use the latest technology to ensure that information about the origin of the fuel is available at the pump. The idea is to inject nanochips into the fuel with information about the origin and composition of the liquid so that, at the pump, it is possible to identify what is in it and where it has been.
Examples from Other Countries
Today, several countries have put an end to informality and the activities of criminal organizations with this type of technology. This was the case in the Philippines.
Analysis:
The São Paulo government’s proposal to implement fuel tracking technology aims to combat organized crime, particularly the Primeiro Comando da Capital (PCC), which controls an estimated 10% of the state’s fuel distribution market. By injecting nanochips into fuel, the initiative seeks to ensure transparency at the pump, allowing authorities to monitor the origin and composition of the fuel, thereby increasing state revenue and disrupting criminal distribution networks.
The potential success of this technology is underscored by international examples, such as the Philippines, where similar tracking measures have curbed informal markets and diminished the influence of organized crime. By leveraging advanced technology, São Paulo could create a model that not only addresses immediate security concerns but also promotes fair competition among legitimate distributors. However, this strategy necessitates a robust implementation framework, including collaboration with fuel distributors, investment in technology, and comprehensive regulatory oversight. Businesses in São Paulo should prepare for increased scrutiny and compliance requirements, as adherence to these new regulations will be crucial for maintaining operational legitimacy in a rapidly evolving market landscape.
Sources: A Folha de SP.
