How to Verify a Fuel or Refinery Supplier — EN590, CIP Verification & Proof of Product Guide
Fraud in physical commodity trade — particularly petroleum — has reached record levels. This guide covers how to verify a fuel or refinery supplier, what EN590 scam looks like and how to prevent it, what proof of product verification requires, and how a CIP verification platform eliminates counterparty risk at the source.
How to Verify a Fuel Supplier — Step by Step
- Legal entity verification — Confirm registration number, country of incorporation, and trading licence. Mismatches between entity name and certificate of incorporation are a common early fraud signal.
- Proof of Product (POP) authentication — Request an SGS or Intertek inspection report, refinery allocation letter, and Certificate of Origin. Verify report numbers directly with SGS — not through the seller.
- Tank storage verification — Confirm the seller's access to product at a specific terminal via a Tank Storage Agreement (TSA) or terminal custody confirmation. Independent inspector presence is the only reliable method.
- KYC — Know Your Counterpart — Full identity verification of the beneficial owner and signing directors. Screen against OFAC, EU, UN, FATF, and FinCEN sanctions lists.
- Payment structure — LC or SBLC — Never transfer funds via SWIFT T/T prior to product confirmation. Use an Irrevocable Letter of Credit (LC) or Standby LC.
EN590 Scam Prevention
EN590 scam refers to fraudulent transactions where a seller claims to supply EN590 road diesel but cannot deliver — either because the allocation is non-existent or documentation is forged. Prevention: never pay upfront without independent SGS inspection, insist on an LC structure, demand an authenticated refinery allocation letter direct from the source, and only transact with KYC-verified counterparts on a closed platform.
What Is a CIP Verification Platform?
A CIP verification platform (Commodity Intelligence Platform with verification) is a closed B2B environment where every buyer and seller is identity-verified before they can post offers or submit RFQs. Unlike open marketplaces, a CIP verification platform enforces KYC at the onboarding stage. Skyra CIP is a purpose-built CIP verification platform for petroleum, precious metals, base metals, steel and bitumen.
Proof of Product Verification
Proof of Product (POP) verification authenticates documents that confirm a seller's physical control or legal ownership of a commodity. For petroleum: refinery allocation letter, SGS or Intertek inspection certificate, Certificate of Origin (COO), and Tank Storage Agreement (TSA). Buyers should verify POP documents directly with the issuing inspection company — not from the seller's PDF.
Tank Storage Verification
Tank storage verification confirms that a seller has physical product at a specific terminal or tank farm. Requires a Tank Storage Agreement (TSA) or terminal custody confirmation, independent inspection by SGS or Bureau Veritas, and direct cross-check with the terminal operator — not through a broker intermediary.
Oil Buyer Due Diligence
Oil buyer due diligence is the process of verifying a prospective buyer is a legitimate company capable of completing a transaction. Includes business registration verification, KYC of signing directors and beneficial owners, financial capacity confirmation, and sanctions screening. On Skyra CIP, all buyers pass full KYC before accessing seller listings.
How to Verify a Refinery Supplier
To verify a refinery supplier: request a direct refinery mandate letter or allocation letter from the producing refinery (not a broker), confirm refinery existence and output via Platts, ICIS or Argus, require independent SGS or Intertek inspection at the loading terminal, conduct KYC on the entity claiming the mandate, and use an SBLC or LC payment instrument — never SWIFT T/T before product confirmation.