Panel Recap: Variance & Tank Gauge Calibration. Overcoming Challenges in the Middle East 

Recently, we hosted a webinar with industry experts from across the Middle East to discuss key factors impacting fuel retailers in the region, what inventory variance really means, and proven strategies to improve visibility, accuracy, and performance in fuel operations.

Our panel featured Essa I. Al-Moosa, Chief Commercial Officer at B.Online Kuwait and Partner at Almousa Projects; Saboor Chohan, Business Development Manager at Wafi Energy – Shell Licensee (KSA); and, from the Titan Cloud team, Gaurav Chowdhury, Sr. Solutions Consultant, EMEA, and Amer Bakarman, Country Manager, Saudi Arabia.

Below we’ve included some highlights of our conversation, and the on-demand webinar for those who missed it.

There Are Different Types of Inventory Variance: Real, Apparent & Hidden

Amer Bakarman explained that variance is the difference between book inventory and actual inventory. Understanding variances helps identify fuel losses, leaks, or measurement errors. He outlined three types of variances:

• Real Variance: Actual physical loss or gain of fuel, such as leaks, theft, or short deliveries.

• Apparent Variance: Measurement or reporting errors, such as tank chart inaccuracies, temperature changes, or timing issues.

• Hidden Variance: Variances created through manual manipulation or data adjustments.

Why MEA Needs to Focus on Variance & Tank Gauge Calibration

“In this region, retailers still rely on manual methods, such as dipsticks, or sometimes use tank emptying as a baseline,” Amer shared. “Because they have no visibility into the tank or no tank charts, they use that empty point as a baseline and calculate variances by comparing the BOL to the sales.”

These methods are time-consuming and often inaccurate, leaving many hidden variances undetected. When large variances occur, reactions are slow, and issues take longer to resolve. Amer added that many companies have invested in ATG systems and automation but don’t use them effectively because they believe the data is inaccurate. As a result, they miss out on the true value of automation.

Wetstock Management Challenges in KSA

Saboor Chohan highlighted why wetstock management remains one of the toughest challenges in the region and explained where variances commonly occur in retail fuel networks:

“When the tanker arrives at the station, temperature changes and fuel movement during transportation mean that the volume received from the depot may not match what arrives at the station. There may also be theft in transit. People usually compare the bill of lading with the tanker dip, but most tankers aren’t calibrated, so the dip reading may not match the documented volume.”

“Next, the fuel is dispensed into the underground tank. That tank may or may not have an ATG. Even if it does, you only get accurate readings if the tank and ATG are calibrated. Over time, underground tanks can tilt, shift, develop leaks, or change due to ground water levels. This is why ATGs need regular calibration.”

Saboor wrapped up by highlighting additional KSA-specific challenges, including environmental and technical factors, operational gaps, limited data availability, lack of transparency, and lack of awareness or cost avoidance.

Inventory Variance Today and the Impact of Digital Tank Charts

In a perfect world, book inventory should balanced. What enters the tank should match what leaves it. However, BoL volume matches ATG delivery less than 1% of the time. Why is this? Gaurav Chowdhury discussed the root causes: Temperature changes, distorted tanks, meter drift, and theft reduce visibility and impact the accuracy of inventory balances.

“The industry expects that what was ordered, what was in the trailer, and what was delivered should balance out,” Gaurav said. “But the reality is different. Temperature and evaporation are major factors, especially in Saudi Arabia. There can also be unnoticed errors at terminals, meter drift, short deliveries, and poor delivery practices.”

This is where Titan Cloud adds value by helping customers reduce variances and improve tank gauge accuracy. Titan Cloud’s digital tank chart captures high-frequency data across inventory transactions, temperature records, and deliveries. Using this data, Titan Cloud reconstructs how the tank behaves and applies a more accurate calibration model.

The role of SIR to Control Variances in a Manual Site

“For manual locations, we collect daily sales, inventory readings, and delivery information through several possible methods. Once this data is captured, we run it through our Statistical Inventory Reconciliation (SIR) engine, the same engine that powers both manual and automated sites. With SIR, we can detect leaks more quickly, identify calibration errors, and deliver meaningful operational benefits, even for sites without automation,” concluded Gaurav.

How to Tackle Existing Challenges

As the session neared its end, Essa I. Al-Moosa shared insights from Kuwait: “Loss and gain, and tank calibration, are some of the biggest challenges fuel stations face,” he explained. “For years, operators relied on manual dipping and gauging. It’s traditional and familiar—but it’s also where most variance comes from. A small mistake in reading or calculation can completely distort the numbers. When that happens, stations often pause operations just to recheck or recalibrate, resulting in lost time and sales.”

Essa emphasized how software changes the equation: “It removes human error. It gives real-time visibility across every tank and site. It lets you make decisions based on accurate data. You don’t need to close stations, spend hours reconciling numbers, or question whether the data is trustworthy.”

He concluded: “It’s not just about using technology. It’s about transforming how fuel stations in Kuwait and the Middle East operate: faster, smarter, and far more efficiently.”

Watch the full webinar on-demand. And if you want to learn how Titan Cloud can help you modernize operations and build confidence in your data, give us a call.