Preventing fuel fraud in Bolivia: how Skynet and Navixy optimize fleets with solar energy and advanced telematics

In Bolivia, fleet management, especially in the hydrocarbon sector, faces unique challenges due to government regulations and the need to prevent fuel smuggling. Skynet, a leading technology solutions provider, has found an innovative answer in collaboration with Navixy, a cutting-edge telematics platform. In this article, we explore how this alliance has optimized fleet management, reduced losses, and improved operational efficiency.

"In approximately 10 Latin American countries, subsidies in the hydrocarbon sector protect the local market from international oil price fluctuations, impacting both productivity and population mobility. However, these subsidies have fueled an illegal market worth up to $3 billion, according to a Global Financial Integrity report, where organizations clandestinely export fuel to international markets. This activity compels governments and companies to implement telemetry-based technology to control tax evasion caused by fuel smuggling".

Juan Carlos Pérez Marquez, Head of Navixy Sales LATAM

A study by Frost & Sullivan indicates that the telemetry technology market in Latin America is expected to grow rapidly, projected to reach $1.8 billion by 2025. Mobile resource management platforms, like Navixy, are essential in regulated sectors like hydrocarbons to ensure compliance and prevent losses. Contact us to learn more about how Navixy can help you comply with governmental regulations in your field.

The challenge: fuel smuggling and government regulations

Bolivia faces a growing challenge with fuel smuggling due to government subsidies, which have been a persistent concern for decades. However, in recent years, this problem has escalated drastically, leading to billions of dollars in tax losses and chronic fuel shortages in the country. According to a report by Fundación Jubileo, Bolivia invests approximately $1.3 billion annually in hydrocarbon subsidies, representing 2.5% of GDP. These subsidies encourage smuggling, as fuel prices in neighboring countries like Chile and Peru are up to three times higher.

One factor contributing to fuel theft and illegal exports is the subsidized fuel price of 3.50 Bolivian bolivianos ($0.50 USD) per liter, which can be resold for double or triple the price in neighboring countries. Bolivia's National Hydrocarbon Agency (ANH) estimates that fuel smuggling costs the government around $150 million annually, impacting both the national economy and fuel availability.

To counter this, authorities enforce strict regulations on vehicle movement. These regulations include constant monitoring, requiring vehicles to transmit their location to ANH at all times, ensuring compliance during refueling. RFID technology on windshields helps track vehicles when they arrive at refueling points.

The solution: solar energy, ultrasonic sensors, and Navixy’s platform

The main challenge was complying with strict reporting regulations and data transmission without interruptions. Some gasoline and GPS sensors rely on the vehicle's ignition to recharge, while others use internal batteries. However, the risk of disconnection was too high to ensure regulatory compliance. Skynet implemented a comprehensive solution based on the Navixy platform, integrating state-of-the-art hardware with solar energy and ultrasonic sensors.

Fuel fraud prevention solution

Key components include:

• Topshine VT-1000 devices: These devices provide flexibility by allowing up to five SIM cards and Wi-Fi sharing, facilitating the integration of sensors and accessories.
• Ultrasonic sensors: Unlike capacitive sensors, ultrasonic sensors do not require drilling into tanks, reducing risks and improving customer acceptance.
• Solar panels and power banks: These components ensure continuous power supply to the devices, even when vehicles are parked, extending the 24-hour battery life of the 950 mAh device to indefinite operation.

Solar panels helped maintain continuous device reporting, even without ignition power, essential as ANH cancels fuel resupply if it loses visibility of units for four days. Power banks also maintained a high reporting frequency, even at night.

In 2021, the Inter-American Development Bank (IDB) reported that using solar panels in transportation telemetry reduced operational costs by up to 20%, enhancing sustainability and functionality in remote or limited-electricity areas.

• Satellite-enabled SIM cards: Emnify's satellite-enabled SIM cards provide precise location tracking even in areas with low coverage, ensuring uninterrupted vehicle tracking.
• Navixy platform: Navixy's platform offers advanced tools for monitoring, analysis, and reporting, enabling users to have full control over their fleets, fuel monitoring, and data transmission to government agencies via API. With a 99.9% uptime and more than 1,600 pre-integrated devices, it represents a stable, versatile solution for telematics data management.

Results and benefits

To design, deploy, and manage the system described above, Navixy and Skynet’s Customer Success Managers collaborated extensively, sharing technical insights on challenges, requirements, and solutions. This collaboration led to numerous benefits for clients, ensured government regulatory compliance, and supported Bolivia’s economy:

• Reduced losses due to smuggling: Precise fuel consumption monitoring and early anomaly detection significantly reduced losses.
• Regulatory compliance: The solution meets government regulations, ensuring transparency and control in fuel transport.
• Improved operational efficiency: Route optimization, reduced downtime, and enhanced fleet management increased operational efficiency.
• **Cost savings:**Reduced losses, increased efficiency, and solar energy usage resulted in significant cost savings.
• Consulting and maintenance from Navixy: Solar panel solutions for mobile devices are monitored through status meetings, alert systems, and geofences, ensuring the solution remains relevant and addresses client issues.

Conclusion: Innovations transform logistics

Through teamwork, industry knowledge, and innovation, Navixy and Skynet developed a government-compliant data reporting system using solar energy and ultrasonic sensors. This solution effectively addresses Bolivia’s fleet management challenges. Skynet has optimized operations, reduced losses, and increased client satisfaction. This solution has the potential to be replicated in other sectors and countries, demonstrating how telematics and renewable energy can transform logistics and transportation. To learn more about how Navixy can help you comply with state regulations, contact our technical experts.