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$24.5m paid over to CAC for 'bad gas' compensation

Wednesday, May 20, 2020

KINGSTON, Jamaica — Petrojam Ethanol Limited (PEL) has paid over $24.5 million to the Consumer Affairs Commission (CAC) as compensation for consumers who were affected by the bad gas incident of 2015.

According to the Ministry of Science, Energy and Technology, only people who would have filed claims that were approved by the CAC will be compensated.  Some 380 motorists stand to be compensated from the payout.

Portfolio Minister, Fayval Williams, has welcomed the move by the board of PEL.

“I hope that this payout will bring closure to this matter and will be seen as the Government making good on its efforts to ensure compensation for the motorists who were adversely affected,” Williams said in a statement from the ministry.

The payment of compensation is a sign of good faith by the Government for the affected motorists as neither PEL nor the Government is liable for the incident, added the statement. 

In 2015, motorists across the island were adversely affected when they purchased contaminated fuel.

The Petroleum Trade Reform Committee (PTRC) was subsequently established in 2016 to investigate the 'bad gas' reports and propose recommendations, several of which the ministry has been implementing, to prevent a recurrence of this incident.