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Bad diesel hurting industry
LACROIX… it is getting more andmore difficult to get vehicles thatare compatible
Auto
June 10, 2010

Bad diesel hurting industry

AUTO

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

Concerns have been rife in the industry about the damage inferior diesel can inflict on vehicle engines and the slow pace of upgrade at Petrojam, the island’s sole oil refinery.

According to president of the Automobile Dealers Association (ADA), Kent LaCroix, diesel vehicles are increasingly being built to use fuel at 10 ppm to 15 ppm, leaving Jamaicans at a disadvantage.

La Croix said 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.

“It is getting more and more difficult to get vehicles that are compatible,” the ADA president said. “The manufacturers ask for the fuel type and determine what vehicles they send,” he added.

He argued that Government’s incentive, charging lower duties to import diesel vehicles, is now becoming counterproductive because of the low-quality fuel available at the pumps, and asserted that inferior-quality diesel fuel damaged both the vehicle’s engine, and the environment.

“As technology improves we are getting cleaner vehicles that are designed for better fuel,” said

La Croix.

“At about 60,000 kilometres is when most new diesel engines will die using this fuel,” he added.

International standards 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.

However, dealers and motorists will have to wait close to four years before any changes can be made at Petrojam.

Winston Watson, general manager at Petrojam yesterday cautioned that any change in diesel quality would have to await an upgrade planned for the Marcus Garvey Drive refinery.

“That is not going to take place until we do the upgrade,” Watson told Auto. “It’s a part of the total plan”.

Watson said that the company was now in the process of doing design work after which financing for the project and a contractor would have to be finalised.

“We are hoping to start work at the end of 2010 into 2011 and complete over a three-year period,” he said.

“When completed diesel will conform to the 15 part per million.”

Importers and owners of diesel vehicles are however not comforted by the three-year promise.

Former president of the Jamaica Gasoloine Retailers Association, (JGRA), Trevor Heaven, argued that Government will have to make a decision about the direction it takes regarding low-sulphur diesel, similar to the introduction of ethanol.

He cautioned that the lack of diesel production at Petrojam dictated that the fuel be imported if demand rises, and this could place unneccessary burden on motorists with resulting higher prices.

LaCroix, in the meantime, contended that announcements were made years ago that would have seen the upgrade at the Petrojam refinery completed in 2009.

“Every year it is put back,” he commented.

The ADA president argued strongly that the delays were related to a lack of funding on the part of Petrojam.

He charged that as far back as 2005 engineers had provided designs for the upgrade and nothing happened since.

“It all has to do with money,” La Croix insisted.

In December 2009, as the government reeled under fiscal pressure, Prime Minister Bruce Golding announced that the proposed Petrojam expansion would be stalled because of US$1.2 billion that it would cost.

At the same time, however, Golding noted that “certain proposals about how the project could be carried out, while insulating the Government of Jamaica from any fiscal liability, have been made”.

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