Release findings of bad gas probe, JGRA urges Gov’t
The Jamaica Gasolene Retailers Association (JGRA) is calling on the Government to release the findings and recommendations of the Petroleum Trade Reform Committee to the public.
“The Petroleum Trade Reform Committee was commissioned in early 2016 to investigate the bad gas saga. This committee has submitted its findings and recommendations to the Ministry of Science, Energy and Technology but these have not yet been made public,” JGRA President Phillip Chong stated on the weekend.
The reform committee was set up by the former Energy Minister Phillip Paulwell in the wake of the bad gas saga which rocked the country between late last year and early 2016. Scores of motorists claimed damage to their vehicles after having bought petrol from various gas stations across the island.
The Bureau of Standards Jamaica (BSJ) was directed to conduct widespread testing of samples from pumps, as well as stocks supplied by petroleum marketing companies. Contamination was found at the retail and supply end, prompting the authorities to set up a committee to look into the operations of the trade, find the source of the bad fuel, and make recommendations to prevent any recurrence.
Bad gas stories have come to the fore again in recent weeks, with a service station in St Thomas accused of selling the contaminated fuel. The association says reports are that 30 vehicles were affected.
“This brings back not-so-good memories of the bad gas saga that affected motorists islandwide exactly one year ago — damage that, to date, have left the motoring public holding the bucket,” Chong stated.
He argued that: “notwithstanding the past, the Ministry of Science Energy and Technology, who has the responsibility to govern and protect the petroleum trade, has reacted to the recent St Thomas episode by instructing the Jamaica Bureau of Standards to act. This sounds familiar, as said action was taken one year ago”.
He questioned whether the BSJ is adequately equipped for these situations.
“The petroleum trade in Jamaica is very sensitive, so the control and handling of the importation, distribution and delivery to the consumers need to have strict guidelines to guarantee the delivery of good quality gasolene to the consumers,” Chong stated.
The stability of the trade at the present time is precarious as petroleum dealers also remain unhappy with the lack of proper contractual agreements with marketing companies. This has led to a long-standing impasse between Rubis Energy Jamaica Limited and its dealers who are being represented by the JGRA.
Chong argued that the deregulation of the trade in the 1990s led to competition for the multinational suppliers and as a result, in order to gain more profits, these companies have introduced “oppressive systems that are guaranteed to reduce the dealers’ margins, whilst their margins increase”.
“Many dealers have gone bankrupt and are forced to leave the trade after many years of operating their businesses, as a result of lower margins. The continuous increases of the franchisers’ margins and fees change one of the fundamental properties of franchise agreement between franchisers and franchisees,” he claimed.
The association has also recently raised concern that its recommendations regarding contractual arrangements for dealers may not have been included in the committee’s recommendations.
Chong wants the Government to quickly start moving towards the implementation stage of the recommedations as well as to establish franchise laws in Jamaica that will guide contracts, franchise fees and accountability for franchisers and franchisees.
In addition to the committee’s report, Chong pointed out, inputs made by the Fair Trading Commission could enhance the integrity in the trade of the supply and distribution of petroleum products.