Organized Crime Threatens Brazil’s Fuel Supply Chain: An Integrated Approach Required

The advancement of organized crime across various points in Brazil's fuel supply chain necessitates a coordinated approach involving law enforcement, regulatory bodies, and private sector players. The illegal activities include everything from fuel adulteration to tax evasion, with an economic impact of around R$1 trillion annually within the industry.

Recently, the advancement of organized crime across various points in Brazil's fuel supply chain has raised significant concerns among experts and authorities. This phenomenon requires a coordinated approach involving law enforcement, regulatory bodies, and private sector players to be effectively addressed. According to estimates from the Instituto Combustível Legal (ICL), recent operations targeting illicit activities have contributed to diverting approximately 10 billion liters of fuel sold irregularly to the legal market. The supply chain in this sector alone moves around R$1 trillion annually and generates approximately R$240 billion in tax revenue, making it an attractive target for criminal organizations. This illegal activity is complex, extending from adulteration mechanisms to fiscal fraud, forming a intricate structure that can significantly impact the legal market.

Source: Valor Econômico