In Burkina Faso, an investigation conducted between 2020 and 2024 revealed a vast fraud system involving the embezzlement of about 34 million liters of subsidized fuel, with damage estimated at over 7 billion CFA francs for the State. This fraud specifically involves 13 industrial units (quarries, construction companies, production units), all found in violation after a sample audit, while the country has more than 1,000 such companies.
At the heart of the scheme is the illicit use of subsidized fuel intended for household consumption. In principle, subsidized hydrocarbons (notably diesel sold at 613 CFA per liter) should exclusively supply service stations for individuals. Conversely, industrial units are expected to source non-subsidized fuel, sold at approximately 1,150 CFA per liter.
However, in practice, some marketers (authorized distributors like Total, Shell, etc.) have been caught sourcing subsidized fuel from SONABHY (the Burkinabe National Hydrocarbon Company), before illicitly reselling it to industrial units at a price lower than the regulated rate for professionals. This fraudulent maneuver allows them to increase their margins while depriving the State of substantial revenues.
SONABHY, although a central player in the distribution chain, is not formally incriminated. Indeed, marketers claim to want to supply their service stations, making it difficult to detect fraud at the time of fuel removal. The organization, according to authorities, does not have adequate means to trace the final destinations of deliveries.
The investigation, still ongoing, has not yet identified any industrial unit respecting the regulated price structure. Authorities have not yet disclosed the identities of the companies involved, due to the ongoing judicial process. Some may opt for a transactional resolution, reimbursing the amounts owed and paying fines, while others may have to answer in court.
This massive fraud demonstrates the shortcomings in the subsidy control system and raises questions about the State’s ability to protect its resources. The misappropriated amounts could have funded essential infrastructure, such as schools, roads, or hospitals. For the authorities, the challenge now is to extend the investigations and establish a more rigorous traceability system to prevent such practices from recurring.