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Gov't moving to improve motor fuel quality — Samuda

BY MARK CUMMINGS Sunday Observer senior reporter cummingsm@jamaicaobserver.com

Sunday, November 28, 2010



MONTEGO BAY, St James — Minister of Industry, Investment and Commerce Karl Samuda says the government intends to improve the quality of fuel being consumed by motor vehicles in the island.

He said he will be meeting with Cabinet colleagues; Mining and Energy Minister James Robertson, Finance Minister Audley Shaw and Mike Henry, the transport and works minister soon in an effort to fast-track plans to improve the quality of fuel supplied to the market.

"We are going to meet to review the entire situation as it exists today, and to see what we can do to move it forward in a very rapid way and not simply to sit around and wait for another three to four years because by then a lot of the vehicles that we will be selling in Jamaica will be compromised because of the fuel that they have to consume," Samuda explained.

He was speaking at the official opening of the ATL Autohaus at Bogue City Centre, located on the outskirts Montego Bay last Friday night.

He argued that because the country does not import low-sulphur fuel that will maximise the operational potential of some vehicles, it is incumbent on the Government to move with alacrity to ensure that the fuel sold in the island is comparable with the rest of the world.

Concerns have long been raised in the automotive industry about the damage inferior fuel can inflict on vehicle engines and the slow pace of upgrades at Petrojam, the island's sole oil refinery.

In fact, the extremely high level of sulphur in local diesel fuel — produced by the refinery at 5,000 parts per million (ppm) — is causing grave problems for dealers and owners of modern vehicles.

President of the Automobile Dealers Association (ADA) Kent LaCroix said earlier this year that diesel vehicles are increasingly being built to use fuel at 10 ppm to 15 ppm, leaving Jamaicans at a disadvantage.

At that time he argued that manufacturers of diesel automobiles have refused to sell their vehicles in Jamaica because the low-quality fuel here is incompatible with the newer engines.

The international standard for the sulphur content in diesel is set between 10 ppm and 15 ppm, while diesel produced in Jamaica is a whopping 5,000 ppm.

Petrojam has already acknowledged the need to improve the quality of fuel being sold but said that this can't happen unless its Marcus Garvey Drive refinery in Kingston is upgraded.

But late last year, the Government indicated that the necessary improvement works at the facility could not be undertaken until next year, due to financial constraints.

Samuda conceded Friday night that there was no quick fix to the problem, pointing out that the existing facility does not have the capacity to store low- sulphur fuel. He also pointed out that there would have to be major infrastructural development at the plant.

He said, however, that leaders of the automobile industry will be invited to devise strategies that could be implemented to alleviate the problem in the short term.

"We could never, as a Government, allow a company to put this kind of investment in place and allow them to languish in pain and grief because of the fuel that we supply in Jamaica," Samuda said in reference to the ATL Autohaus facility.

Meanwhile, Adam Stewart, deputy chairman of ATL Automotive, singled out Jamaica as one of the few countries in the world with such poor fuel quality, as he bemoaned the negative impact on the environment.

"Clean fuel will have a positive impact on the environment and is also needed to access the latest technology," Stewart told the large gathering which included a wide cross-section of Jamaican politicians and business leaders.

He also called on the Government to reduce duties on motor vehicles which conform to environmentally friendly standards.

"Clean fuel is the beginning (to protect the environment), getting access to the latest technology is (also) the beginning, but without bringing the duties down so that people in Jamaica can afford these cars under an environmental initiative, the problem will get worse," he stressed.

Pointing out that global warming is "real and needs to be fixed", the ATL Automotive deputy chairman noted that manufacturers have already taken the initiative to produce cars that are not harmful to the environment.

"So it is now time that we take responsibility with our duty structures and play our part on the global map in Jamaica, because it is the only way forward," said Stewart.

Stewart's father, Gordon 'Butch' Stewart, in his brief address, also commented on the poor quality of fuel being sold on the market.

"It is good to know that the Government recognises the problem with the fuel," he said. "When it comes to the fuel, it is penny-wise and pound foolish because we are buying fuel that is going to destroy the engines and it really costs just a little more to buy the proper fuel."

He argued that several motor vehicle manufacturers have taken a decision not to allow diesel-engine motor vehicles into the island because they are fearful that they will under-perform, due to the sub-standard fuel being sold on the local market.

With more than a US$4.25-million capital injection in Montego Bay, the state-of-the-art Autohaus centre sells Audi, Volkswagen, Honda, Jaguar, Range Rover and Land Rover — some of the world's premium motor vehicle luxury brands.

A high performance service centre is also located at the premises in close proximity to the facility.

"We have the most efficient cars and service centre here," the younger Stewart boasted, adding that he is very proud to have the dealership for some of the most efficient vehicles in the world.



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COMMENTS (6)

gary lee
11/28/2010
The Govt. should get a loan to upgrade facilities and add a tax on automobile resellers to recover cost, or go to them for a direct loan and guarantee them tax breaks.
Brooklyn Jamaican
11/28/2010
Read between the lines. What they are saying is man and man will be given more license, freedom and tax breaks to import more fuel.
lorenzo Bronx
11/28/2010
Please MR PM please tell why is that money can be found to move the Army camp but none can't be find to improve the oil refinery? which is more important to the country? ohh sorry to you.
ESTEBAN AGOSTO REID
11/28/2010
@ Ann Smith
You are SO correct !! Just about everything in Jamaica is done at a tortoise pace. As a society, we are generally not pro-active. We generally react to things, situations, problems and circumstances.And at that point in time, it is no longer cost advantageous to effect/implement the necessary or desired changes re the issue at hand.One wonders if we will ever be able to quicken the pace. Nuff respect !!
christopher Isaacs
11/28/2010
The number of unfullfilled promises that this Minister and ministry have made are countless, why is it so difficult in JA to change things? We have to make big speeches about them first and then nothing is ever done. When giving keynote addresses some grand announcement is made or at the annual budget debate. I think the Minister and Ministry would be better off if it did concentrate on one particular area like manufacturing and give what is needed to promote this sector.
Ann Smith
11/28/2010
Typical Jamaican lack of urgency to respond to something that can be so financially devastating to the motorists, dealerships, and the environment. This issue should have been addressed a long time ago. When will Jamaica learn to quicken the pace?

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