Brazil fuel fraud involves organized crime and supply chain manipulation

Authorities and industry experts are highlighting the systemic nature of fuel adulteration in Brazil, noting that fraud often involves organized crime spanning the entire supply chain. Emerson Kapaz, president of the Instituto Combustível Legal, stated that gas stations are merely the ‘tip of the iceberg,’ with criminal involvement extending to distributors, transport companies, and the use of manipulated pump technology to increase ethanol levels in gasoline.

To combat these sophisticated crimes, the Federal Police are seeking increased integration with the private sector. Director Andrei Rodrigues emphasized the need to adapt investigative methods to a digital economy involving blockchain and crypto-assets.

In a related enforcement action in Rio de Janeiro, inspections in the Freguesia area identified several consumer rights violations at gas stations. Authorities from Procon-RJ and Sedcon discovered expired lubricants and radiator fluids, products lacking mandatory manufacturing information, and items displayed without prices. The task force also noted the absence of required consumer complaint books at the inspected locations.