Cenox controversy resurfaces

A government report from South Korea’s Ministry of Knowledge Economy (MKE) said the government lost 6.9 trillion won (US$6.1 million) in tax revenues over a five-year span due to a product that purportedly could replace gasoline, but later was marketed as a gasoline additive. The country’s market for fuel additives is at 30 million kiloliters, the report said. Cenox was originally sold in Korea in June 2002. It is a cocktail of 60% solvents, 10% toluene, 10% alcohol, and aromatic compounds, and was sold for 990 won (83 US cents) per liter, about 25% less than gasoline at that time. It was officially banned as an additive in 2006, but it has found its way into Korean vehicles with the increase in gasoline prices. The manufacturers say it is an eco-friendly, cost effective alternative to conventional fuel. According to an MKE official, consumers were mixing as much as 9.6% of Cenox in gasoline. After the ban, the rate dropped to 5.2% in 2008 but crept up to 5.7% in 2009. The government has pledged a crack down on the use of these additives and have formed a task force of police and tax agency officials to address the problem. (March 11, 2011