GEISHA KOWLESSAR-ALONZO
Hundreds, if not thousands, may end up on the breadline, as Paria Fuel Trading Company Limited has discontinued supplying fuel to Unipet.
And with Christmas fast approaching Unipet employees fear their season will be grim.
Paria said its decision to cut Unipet’s fuel supply was a consequence of Unipet failing to renegotiate a supply agreement since April 2019.
It also said Unipet has defaulted on payments owed for September and October 2019 deliveries.
“Paria has had challenges receiving payment from Unipet in accordance with the agreed payment schedule; this failure to pay monies when due has the potential to affect Paria’s ability to procure fuel from its suppliers.
It added it is willing to continue discussions with Unipet to achieve a solution that is both “safe and in the best interest of both companies and which minimises any disruption of supply to the local market,” the statement added.
President of the Petroleum Dealers’ Association, Robin Naraynsingh has described the move by Paria as unfair, unjust and resulting in victimisation.
He is also calling for immediate intervention from Finance Minister Colm Imbert and the Government.
Despite the decision, Paria is assuring the public that there is no shortage of fuel. NP has also assured that there will be no disruption in fuel supplies at its 115 stations across the country.
“Paria will make available to the National Petroleum Marketing Company (NP) the difference in the quantity of fuel required to meet the country’s full needs.
“NP will distribute the full supply so that the motoring public should see no disruption,” Paria said in a statement.
But Naraynsingh said apart from job losses, this will now result in a monopoly in the supply of fuel and even longer lines at the gas stations.
“I had spoken with the Finance Minister who promised to get back to us before Christmas to determine how we go forward.
“I am very surprised Paria would do this to our industry. The inconvenience especially as it’s Christmas time will be catastrophic. It is unimaginable that a decision of this magnitude will take place.
“At least Paria could have waited to hear the minister’s pronouncements,” Narinesingh said.
He said the association had filed under the Freedom of Information Act for NP to disclose information regarding its tax returns.
But Naraynsingh said this was not forthcoming.
“That is not the way to run a country or to deal with people. It is unheard of. I am really sorry this has taken place.
“I hope we are not destroying the things we have created. Those in the petroleum industry have served this country in many ways...We mortgaged our homes, we raised capital, and now to have investments...to have the rug pulled from under it is very unfair to all the dealers. We will feel it,” Naraynsingh added.
In response, Unipet said it will take whatever action it deems necessary to protect its constitutional right to operate in the market.
Unipet accused Paria of acting on behalf of the State, saying it appears to be “pushing the market toward a monopoly situation which has in the past resulted in significant drains on the treasury and poor standards of operations.”
The company described the action by Paria as extremely unfortunate, especially in light of fact that Paria is a monopoly supplier and Unipet will have no other sources of supply.
“This issue has been ongoing since April 2019 and we have continued to negotiate in good faith. We expected that our areas of misalignment would be resolved.
“The company is surprised that Paria would take such action which in effect means they have withdrawn from the negotiation table without regard for the impact on the industry and consumers,” Unipet said.
The statement however, was later retracted.
Numerous calls to Unipet’s CEO Dexter Riley and it chairman Dr Afraz Ali went unanswered.
WhatsApp messages sent were read but no response was provide.
Unipet currently has 24 service stations.
