How a Legitimate Fuel Transaction Works: Step-by-Step from ICPO to Delivery

Why this transparency matters

Every competitor claims they have "secure procedures" and "clear processes" — and not one of them publishes the actual sequence of steps. We do, because if you understand the process, you become harder to defraud, easier to negotiate with, and more likely to close a clean deal.

Below is the procedure as MinePetro runs it from our Canada base, working with refinery sources in Europe, the Middle East, and North America.

Step 1 — Buyer issues an ICPO

The buyer sends an Irrevocable Corporate Purchase Order specifying:

• Product (e.g., EN590 10 ppm, Jet A1)
• Quantity (per month, in metric tons)
• Contract duration (spot, 6 months, 12 months)
• Target price formula (Platts +/- discount)
• Delivery terms (CIF, FOB, TTO)
• Destination port

The ICPO carries the buyer's company stamp, passport copy of the signatory, and Bank Comfort Letter (BCL).

Step 2 — Seller responds with FCO and soft procedure

The seller (via the verified mandate or title holder) reviews the ICPO. If the volume, destination, and price are workable, the seller issues a Full Corporate Offer (FCO) restating the terms with any adjustments and attaches the Soft Procedure — a document showing the step-by-step process the seller proposes.

This is your first opportunity to spot scams. Real soft procedures match industry norms. Scam procedures invent fee categories.

Step 3 — Both sides sign the SPA

After the FCO is accepted, the parties negotiate and sign the Sales and Purchase Agreement (SPA). The SPA is the legally binding contract. MinePetro's standard SPA explicitly includes:

• Dip test before payment as a buyer right
• Independent inspection by SGS / Intertek / Bureau Veritas
• Q&Q report as the basis for payment
• Refund/penalty terms if Q&Q fails to meet specification

Step 4 — Seller issues Proof of Product (POP)

Within the period defined in the SPA, the seller provides:

• Authorisation to board (ATB) on refinery letterhead
• Current dip-test report (within the last 7–14 days)
• Tank Storage Receipt (TSR) showing the product is held in the seller's name
• Statement of product availability for the agreed loading window

A real POP can be cross-verified. Call the refinery. Call the inspection company. If any of those calls fail, the deal is fake.

Step 5 — Buyer issues payment instrument

Depending on the SPA, the buyer arranges:

• A Documentary Letter of Credit (L/C), or
• A Standby Letter of Credit (SBLC), or
• An escrow arrangement with a tier-1 bank, or
• For TTO transactions: an MT103/TT wire after dip test

The instrument is operative but conditional — it cannot be drawn until the dip test confirms Q&Q.

Step 6 — Buyer's inspector performs the dip test

The buyer's nominated inspection company (SGS, Intertek, Bureau Veritas) attends the loading terminal. The inspector:

• Verifies tank seals are intact
• Takes physical samples from top, middle, bottom of the tank
• Measures volume using calibrated dip equipment
• Tests samples against SPA specification
• Issues the Q&Q certificate

This step is non-negotiable. If a seller refuses dip test before payment, the deal is dead.

Step 7 — Q&Q passes → Title transfer → Payment

If the Q&Q certificate confirms product is on-spec and on-quantity:

• The seller issues the title transfer documents (Bill of Lading for vessel transactions, or new TSR for TTO)
• The buyer's bank releases payment
• The seller delivers commercial invoice, certificate of origin, certificate of quality

Payment timing varies by Incoterm:

• TTO: payment on title transfer at the terminal (same day as dip test)
• CIF: payment on presentation of shipping documents at destination port
• FOB: payment on Bill of Lading once vessel sails

Step 8 — Delivery and settlement

The product moves to the buyer:

• Vessel sails to destination port (CIF/FOB)
• Tank-to-tank transfer is registered (TTO)
• Final discharge port inspection confirms delivered Q&Q
• Any quantity differences are settled per the SPA tolerance clause

The intermediary commission (MinePetro's fee) is paid out under the IMFPA registered alongside the SPA — so there is no surprise about who is paid what.

What to expect timing-wise

A realistic spot transaction takes 5–14 business days from ICPO to delivery, depending on:

• Time to verify counterparty documents
• L/C issuance time at the buyer's bank (typically 3–5 days)
• Inspection scheduling
• Loading window at the refinery / terminal

Anyone promising 24-hour fuel deliveries is either lying or running a Ponzi-style operation moving deposits between victims. Walk away.

The takeaway

A real fuel transaction is procedural, document-heavy, and slow. That is a feature, not a bug — every step is a check against fraud, against quality failure, and against title disputes. If your counterparty is rushing you, the rush is the scam.