GPS monitoring of petroleum transport vehicles and the first phase implementation of the smart card system has resulted in a 60% reduction in smuggling operations, according to a senior official at the Egyptian General Petroleum Corporation (EGPC). As part of the programme, truck routes were monitored during the distribution process, from refineries to depots and then onto fuelling stations. Smuggling operations over the last few months have increased significantly via tunnels from the Sinai town of Rafah, or via waterways, and the fuel was sold at international prices, according to the official. The official added that EGPC has recently faced difficulties in monitoring fuel distribution and following up on shipment arrivals at depots and then to stations. According to the official, GPS devices and smart cards have been placed in each vehicle to monitor shipment receipt at depots or gas stations. The operations room responsible for monitoring distribution followed the vehicles' routes, and smart card machines have been distributed in depots and gas stations to monitor receipt and delivery of shipments. The official added that the oil sector faces an annual 20% smuggling rate of the total amount of fuel allocated for the local market. This came as a result of a prior inability to monitor and control distribution. The official said that Egypt has faced a severe petroleum product crisis over the last two years due to the threat of smuggling.
