Archive for the ‘Gas News’ Category

Petroleum Company of Jamaica sold for J$2.3 Billion

Tuesday, May 3rd, 2016

Petroleum Company of Jamaica (Petcom) has been sold for US$19 million (J$2.3 billion)  to Phoenix Fuels and Accessories

Phoenix signed an agreement with the Development Bank of Jamaica on April 29, 2016 following nearly six months of negotiations.

In November 2015, Phoenix was identified as the preferred bidder, beating out rival bids from Rubis Caribbean Holdings and Sol Investments Ltd. One other bidder, EDJ acquisitions, was late and was disqualified.

Petcom operates  24 branded service stations and 14 liquid petroleum gas-filling plants across Jamaica. Their service stations tend to be at provide gas products as lower prices that other brands.

SOL Jamaica goes after LPG Market

Wednesday, April 20th, 2016

The Jamaica Gleaner is reporting that SOL Jamaica is to launch a LPG business while acquiring a Service Station network.

The market is controlled by three players at this time GasPro, IGL and PETCOM.

SOL Jamaica had recently failed in its bid to acquire the PETCOM brand, gas stations and LPG business, from the Government with the lucky party being Phoenix Fuels.

SOL Jamaica parent company is Barbados-based Sol Petroleum.

Source:Sol Jamaica To Launch Start-Up LPG Business, Buy Gas Station Network

Unipet Gas Stations Sold to Johnson Petroleum

Wednesday, February 3rd, 2016

According to a Jamaica Gleaner report, Unipet (United Petroleum) has been sold to Johnson’s Holdings.

Unipet service stations generally have some of the lowest in the gas prices submitted to the Jamaica Gas Prices website. It is seen as a service station for budget conscious Jamaica drivers.

According to the report the brands, Unipet and Johnson’s, will remain. Johnson’s are also in the business of low price high volumes. As such this deal should not affect consumers negatively.

The deal was arranged by GK Capital on the request of Hagley Park Holdings who previously owned 80% of Unipet. It is seem some of the aging shareholders of Hagley Park Holdings were keen on cashing out.

It should be noted that Unipet’s name did not come up at all in the recent bad gas scandal to affect Jamaican consumers recently

Source:

Bad Gas in Jamaica

Tuesday, December 29th, 2015

A week ago news broke in Jamaica about bad gas  affecting motor vehicles. I first heard of the issue while when I went to have my motor vehicle repaired at a dealer. There I overhead a conversation about cars in western Jamaica being affected by what by sound of things pointed to bad gas. Turns out it seems that the parish of St. Thomas has been worst hit with one garage operator claiming he has seen over 50 vehicles affected.

Long time issue?

The quality of gas has long been a concern at service stations. Al Edwards in an Observer article tackled the issue of fuel quality back then.  Neville Graham’s article in the Sunday Gleaner of December 27, 2015 carries the title there is “Big Business in Bad Gas“. The questions what has the government of Jamaica done to prevent this. In response the Governement launched a probe and today we begin to see hints of the findings.

How it damages

Fuel filters are found in the fuel lines of gas tanks and screen out dirt and rust particles from fuel.

“In these cars nowadays, the filter is really designed to last forever. It’s in the fuel tank, and it’s not something that’s supposed to be changed. They are very expensive because it is not something that happens every day (filter issues), and it’s all the newer cars that are affected,” Hudson said.

Yet at the end of the day motorists are left none the wiser as to which stations are affected. It is a tricky call to “name and shame” the gas stations as some have suggested. The problem is the gas stations might not be at fault as it might be the trucker/truckers that are responsible. Then again it might not be the truckers but it might be the source. Petrojam has said they are not at fault but gas is also imported by marketing companies. Until all the details are available it would be irresponsible to start blaming anyone.

The Gleaner however indicates from a copy of part of the report of bad gas that there are rogue gas stations are located in St Thomas, Kingston, St Catherine, Clarendon and St Ann.

Interesting RJR reports that  a service station in Morant Bay has refunded some of its customers affected by bad/contaminated gas. In another report a service station outside of Spanish Town is reported to have suffered over $800,000 losses when the gas it received caused the pumps to stop working. In that case it appears no gas was pumped into in motor vehicle.

My Advice would be

- Buy from a known marketing companies, Total, Rubis,Texaco, Epping,Petcom,Unipet

- Do not buy gas from any “Back door” service stations

- Do not but gas from anyone selling out of a drum…

Timeline

December 19, 2015 - News breaks in Media about Bad Gas

December 22,  2015 -  Probe ordered by the Ministry of Science, Technology, Energy and Mining

December 28, 2015 -  Report to be released tomorrow

Gas Prices Trending down.

Sunday, July 5th, 2009

Over the last few weeks gas prices, gas prices have been trending down. Since the Government’s increase of the GAS TAX, the price annouced by  PetroJam has tend to trend in the upward direction. To be honest some of this movement was directly related to increase in price of OIL on the world market that now hovers in the  high $60s to low $70s per barrel.

Price difference remain high

One trend that has not changed is the difference in prices  depending on which station you visit. You can see a quick comparison by click here. For e.g. the price differential for E10 was almost $6 per litre.  The price difference for other products is even higher.

New Price Leader

Over the last week, the arrival of Micheal Service Station at Heroes Circle has introduced a new price leader. Micheal’s took over from the Texaco operation. For years we wonder why that station hardly showed prices, they were expensive, and why they did not organise and compete against Total. While the competition is finally here. The lines are organised now with entrance and exit marked off with chains in place to control the traffic.  The result is from a situation of empty pumps and poor service, to long lines and much bettter service. The hope is that they will keep it up.