Diesel Fuel Management at Site

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Wednesday, 19 May, 2021

Fuel Management is one of critical activities that are laid on every business that dealing with the fuel provision. Lack of knowledge on the fuel management might provide cost significant impact to the business continuity, employee, environment, asset and essential for company reputation.

Then, how to manage fuel activities safely? what are the advantages of monitoring efficiently, maintaining quality & quantity of fuel effectively? which of course can be accounted for.

Basically, Fuel Management is divided into three:

Fuel Stock Availability 

The availability of fuel on site is very critical due to fuel is used to support operations that will have an impact on the business. Running out of fuel will cause delays in operations and other support functions.

Maintaining stock availability according to the usage plan by avoiding running out and excessive stock is one of the challenges in managing fuel on-site.

Q1. In your opinion, why is it important to keep sufficient stock and avoid its excessive?

Planning starts with accurate & accountable data. Then, the question is,

how accurate is the data? is there any digital facility for accurate reporting? or supporting with the manual method?

does the person in charge of conducting the inspection and reporting have the appropriate competence?

It is essential to ensure those questions, so that the plan for replenish fuel can be carried out appropriately based on the correct data.

The following points can be considered when conducting replenishment plan:

1. Buffer Stock Days. How many days the stock available until the next shipment.

2. Daily Throughput. High accuracy estimation of daily usage and its ups and downs.

3. Tank Capacity. Consider the maximum capacity of the storage tank which will be impacted on the replenishment strategy.

Q2. Can you provide additional point for its consideration? 

Fuel Storage

Fuel store in the main storage tank prior distribute to the end users. Proper fuel management during its storage shall be implemented to ensure that fuel does not experience the quality degradation and quantity loss exceeds the tolerance percentage.

1. Quality Control

Only fuel that conforms to the specifications is allowed to be accepted, in other words, the quality of the fuel starts from the receiving process until it flows in the storage tank. If the fuel quality off spec, do not accept it! escalate to the related parties so that the issue can be resolved properly.

Routine and periodic sampling & testing shall be conducted during fuel in the storage tank, including:

Daily. Water Drain, the purpose is to prevent fuel mixed with water so that it can cause degradation of the fuel quality and corrosion inside the tank.

Monthly. Carry out sampling of fuel in the tank, do a short test in an internal / external laboratory. Short test parameters: visual inspection (colour / appearance), water content, density, flash point.

Quarterly. Test the fuel sampling in an accredited laboratory.

2. Recordable & Stock Reconciliation 

Stock = Money. Product movement shall be recorded accurately in the daily report, the report contains of throughput, remining stock, receiving, loss & gain. If it is noticed that the loss & gain exceeds the tolerable percentage, the appropriate action shall be taken for investigation & as prevention in the future.

Q3. What are the causes that contribute to the product loss & gain?

Handling & Operations

Diesel fuel oil or generally known in Indonesia as solar is categorized as dangerous and flammable goods because the nature of the goods can cause explosion, fire, poisoning, high temperatures, or the effects of corrosion.

Dangerous goods are classified based on class, the most significant risk and impact on health that has a short-term or long-term risk, and a physical impact on the objects or people.

Q4. Does anyone know, what class is it categorized into? 

Diesel Fuel in Indonesia is traded with two specifications, Cetane Numbers 48 & 51. It is not a single compound, but is a mixture of petroleum derivative components, including paraffin, iso-paraffin, naphtha, olefins, and aromatic hydrocarbons, each of which has physical and in certain chemistry, the ASTM method is used as a standard reference periodically.

Indonesian Government regulates in the SK Dirjen Migas No.28.K/10/DJM.T/2016 Standards and Quality (Specifications) for Diesel Fuel Type 48, which refers to ASTM D 975 - Standard Specifications for Fuel Diesel Oil.

Some of the common parameters used in the Diesel Fuel specification:

1. Colour ASTM

2. Density

3. Cetane Number

4. Sulphur Content

5. Flashpoint

6. Viscosity 

Q5. please share if you know other parameters and what are their purpose?

In general, we already know the nature of fuel, especially for Diesel fuel. Besides benefits for human life, there are also risks that must be managed properly.

Please submit your answer to question Q1-Q5 or any question in below “Send Inquiry”, we appreciate your involvement in sharing knowledge. This will help people to know more about fuels,  the advantages and how to manage it for the safely operation.