Let's take a closer look at the hidden costs of stolen fuel

Most of the costs of stolen fuel aren’t too much of a mystery – you’ll probably already know a fair bit about some of the biggest ones, especially if it’s a problem you’ve dealt with in the past. As we’ve covered several times here at TankSafe, fuel theft has recently been on the rise – primarily driven by seismic changes in the economic climate, the ongoing fuel crisis, and wholesale price increases. 

That’s been particularly worrying for fleet managers up and down the UK – the major costs of fuel theft include not just the fuel, but also potentially damage to equipment and storage facilities, especially if the thieves have attempted to use brute force. Tanks, pumps and ancillary equipment are all amongst the most common assets that can get damaged by thieves, whether or not the theft itself is successful. That can make insurance costs a nightmare.

In addition to these though, fleet owners also have to contend with further ‘hidden’ costs. Let’s take a quick look at these in more detail. 

The environmental costs of fuel theft

Following an instance of fuel theft, it’s not uncommon to find damage to pipes and storage containers, whether they’re mounted on vehicles or stored separately. Sometimes, this damage can lead to further fuel leakages and environmental spills into the surrounding area. These can be notoriously hard to clean up, especially if the environmental damage isn’t immediately evident, and only discovered some time after it’s occurred. 

Either way, this environmental damage can be devastating for the local flora and fauna. In the worst cases, it can even result in significant wildlife deaths, or even permanent disfigurement of a natural area.

Not only is this a horrible consequence in itself, but it can have serious legal repercussions too. Environmental legislation often ends up putting the onus on the polluter, whether or not the act itself was the result of deliberate negligence. That means if you’re unlucky, you may end up having to pay a significant penalty even if your pollution was the result of being targeted by a third party. That’s in addition to the necessary cleanup costs that you’ll likely have to shoulder in the first place. 

The reputational damage of fuel theft

In the vast majority of cases, the reputational damage associated with fuel theft is almost entirely related to the environmental spills that often occur around them. The main problem is, once your company has been publicly associated with environmental pollution, the nuances can sometimes get lost, so it can quickly become a hard label to shake. 

It can sometimes be a factor in losing existing client contracts, or other types of business relationships (like partnerships) – and once they’re gone, you may find it hard to pick up new ones. It’s not hugely common, but it can and does happen. What’s more, the reputational damage can extend for years after the end of the actual event. 

How can you counter these hidden costs?

To be quite honest, preventative measures are always the most effective. However, in the aftermath of a theft, you can minimise the worst of the consequences by making sure you actively communicate with the relevant authorities, such as the Environment Agency, and take proactive steps to address the damage. Keeping records of your actions, and the date you took them, never hurts either. 

In terms of preventative measures, some of the most effective ones include:

• Drawing up an action plan in advance for what to do if you are targeted (you may need external expert advice for this)

• Delivering training for your employees to ensure that they react in a prompt, reasonable, and – crucially – safe way

• Conduct a thorough evaluation of your security systems, and consider investing in new ones if the current ones don’t seem up to the job.

You may also want to look at Environmental Risk Insurance, or Environmental Liability Insurance. However, we should highlight that we’re mentioning this for informational purposes only – we’re not insurance advisors here at TankSafe, so ultimately you’ll need to assess that decision for yourself! 

And of course, there’s one more effective preventative measure you can use to securely protect your fuel – and that’s exactly where we can help here at TankSafe. It’s called TankSafe Optimum – an antisiphon device which we’ve specifically designed to provide 100% protection, so you can have peace of mind against fuel spills, overfilling, and skimming. 

You can find out more on its dedicated page on our website, or find out answers to some of the most common questions over on our FAQs page. If you’ve still got queries, our experts will be happy to resolve them - fee free to give us a quick call on 01253 400 401, and we’ll be happy to help however we can!