By Petulia Clarke,
Staff Reporter
THE MINISTRY of Commerce, Science and Technology is demanding co-operation
among gasolene dealers, suppliers and consumers to combat problems
being faced with illegal gas stations where product quality and
safety are being compromised.
Also, the ministry is, among other measures, exploring regulations
that would empower safety inspectors to order the closure of illegal
outlets, a procedure for which the formal framework is being formulated.
This, according to Dr. Jean Dixon, the ministry's Permanent Secretary,
who said yesterday that despite ministry intervention, the problem
"has escalated to unacceptable levels."
NAGGING PROBLEM
Addressing the Jamaica Gasolene Retailers' Association's (JGRA)
52nd annual general meeting at the Alhambra Inn, St. Andrew, Dr.
Dixon said that although various issues facing the industry had
been addressed through the amended Petroleum Quality Control Act,
"the problem of the illegal fuel trade has never been fully brought
under control."
The Act now allows illegal operators to be fined up to $1 million
for breaches, compared to the former fines that could not exceed
$10,000.
"Illegal petrol sale is a critical channel through which product
quality can be and is being greatly compromised," Dr. Dixon said.
"Above all, the safety of lives and property are always at stake."
Concerted efforts being made to stamp them out
In fact, over the last five years about 20 petroleum-related accidents
had been reported, causing significant loss of life and property
in some instances. In the past, several premises have been destroyed
as a result of fires which started at illegal service stations.
Two years ago two massive fires in Greenwich Town and Hagley Park
Road destroyed four houses and left 45 people homeless. It is estimated
that there are more than 100 illegal stations in the Kingston and
St. Andrew region, Dr. Dixon said.
Lloyd Brown, president of the JGRA, told The Gleaner that the situation
was an especially unfavourable one for retailers, one which they
had difficulties addressing because of fear of the illegal retailer.
"It's our products they've stolen and skimmed off... we're losing
in both instances - on the product and on sales," he said. "JGRA
feels very strongly about it as we have to meet all the statutory
requirements, we have to operate within the law and these people
take our products and sell them at a lower price."
He said that consumers would at most times not be getting what
they were paying for, and could be getting mixed products of incorrect
quantities that could be harmful over time.
"But it's big business," Mr. Brown said hinting that retailers
may often be brow-beaten by the illegal operators to keep quiet.
"Sometimes they are even supported by people who shouldn't be supporting
them," he added.
In a bid to address the problem the ministry has employed four
safety inspectors. But Dr. Dixon conceded that the problem still
remained a mammoth one.
"Efforts to eradicate this dangerous and illegal practice can only
succeed with co-operation..." she said. "The fact is that illegal
stations flourish because there is a source of supply of petroleum
products and a clientele that supports this illegal market. It is
against this background that a far-reaching and comprehensive programme
involving all players in the industry must be undertaken."
The Petroleum Advisory Committee is working with the Private Sector
Organisation of Jamaica's Energy Committee, and combined with the
ministry, is expected to make a significant impact on the problem.
Collaboration with the police will also be strengthened.
Mr. Brown said that more regulations should also be coming in place
so all retailers will have to register with the ministry or face
prosecution.
