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Federal Revenue Announces Destination of Millions of Liters of Illegal Fuel Seized and Reinforces Fight Against Frauds in the Sector.
The Federal Revenue announced, this Friday (10/17/2025), the destination of millions of liters of illegal fuel seized in operations carried out across the country in recent months.
The agency, linked to the Ministry of Finance, determined that the material will be transferred to the Legal Fuel Institute (ICL), after a cooperation agreement established with representatives of the sector.
The decision is the result of extensive dialogue with companies and entities related to the fuel industry, and aims to ensure transparency and security in the handling of the material.
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The measure comes after a series of operations by the Federal Revenue that dismantled schemes for the irregular commercialization of fuels, many of which are linked to organized crime and tax fraud.
Investigations revealed the presence of methanol — a toxic substance and prohibited for human consumption — in large volumes of products sold at gas stations and distributors in different states.
Operations Uncover Criminal Network of Adulteration and Tax Evasion
Among the most significant actions conducted by the Federal Revenue, the Boyle and Hidden Carbon operations stand out, resulting in the seizure of millions of liters of illegal fuel adulterated with methanol.
The investigations pointed to the involvement of companies linked to financial groups headquartered in the Faria Lima area, in São Paulo, demonstrating the level of complexity and the scope of the frauds in the sector.
On Thursday (10/16/2025), a new development of these investigations was triggered with Operation Alchemy, carried out in partnership with other public agencies.
Although the focus of this phase is not directly on fuels, the action seeks to collect samples of alcohol beverages also adulterated with methanol. The toxic product has already caused 41 cases of poisoning and six confirmed deaths, all recorded in the state of São Paulo.
Legal Fuel Institute Takes Over Custody and Disposal of the Product
With the new agreement, the Legal Fuel Institute (ICL) will be responsible for the custody and subsequent disposal of the seized illegal fuel.
The entity, considered “reputable and representative of the sector” by the consulted companies, will coordinate the deposits, quantify the volumes, and indicate suitable locations for storage, in accordance with the characteristics of each participating company.
According to an official statement from the Federal Revenue, “with the agreement, the institution commits to dialoguing with the fuel sector and indicating competent entities to take on the custodial charge, as well as the locations and quantities possible for deposit, according to the availabilities and characteristics of the companies in the sector.”
Each stored batch will have an individual responsibility agreement, ensuring traceability and control over the destination of the product. The ICL will be responsible for custody until the final decision, which may result in an auction or return to the owner, depending on the legality of the case.
Federal Revenue Strengthens Fight Against Tax Evasion and Consumer Protection
The fight against illegal fuel is one of the Federal Revenue’s priorities, which has intensified its actions to reduce tax losses and prevent criminal practices that directly impact consumers.
In addition to causing billion-dollar losses to public coffers, fuel adulteration risks the health and safety of the population.
“The Federal Revenue will continue to advance in the fight against tax evasion, fraud, and organized crime, protecting the market and the Brazilian population,” the agency reinforced in an official statement.
The agreement established with the Legal Fuel Institute is seen as an important step to strengthen transparency and integrity in the sector.
With it, the government aims to provide an adequate destination for seized materials, ensure the legality of operations, and reduce the economic and environmental impacts generated by the activities of groups that sell illegal fuel in the country.
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