Petrol pirates thrive - Authorised gas operators lose millions daily as black market flourishes
published:
Monday | April 14, 2008
Hidden behind tall zinc fences and stern faces, illegal gas stations continue to flourish in the Corporate Area, especially in Greenwich Town, Kingston.
The Gleaner embarked on a tour of the area recently to test the system and found at least four illegal gas stations operating in less than a one-mile radius.
On approaching one gas centre in Greenwich Town, four men sit on the sidewalk at the entrance surveying the vehicle as it slows to a halt.
One young man from the group stands cautiously as he approaches the car to hear our request.
"Everyt'ing sell off, wi nuh have nuh gas right now, unless a gas oil you want," shouts the young man.
"Wi nuh get gas pon Wednesdays, wi run out, come back in a hour's time!" he says softly as he comes towards the vehicle window.
Some of these illegal gas stations exist mere metres from patrolling security forces which The Gleaner saw during its tour of the area.
Citizens' help necessary
Head of Operation Kingfish and the National Intelligence Bureau, Glenmore Hinds, whose elite crime-fighting team has targeted illicit petrol stations in the past, says that while operations had been successful, more collaboration across all sectors was critical to winning the war on illegal operations.
"We need citizens to refuse from buying from these unauthorised gas stations and for citizens who are living near to these stations to report their activities, as they compromise their safety," he tells The Gleaner. "We also need the retailers and the distributors to be more vigilant and also the contractors who own these trucks."
Reaping cheap prices
However, that warning may be falling on deaf ears, as when TheGleaner team visited the area, one gas station was a hive of activity with an attendant filling the tank of a striped Tata bus. As soon as it departed, another arrived.
Motorists guzzle down the rock-bottom prices, resulting in big savings on the black market. Customers can purchase a five-gallon bucket of petrol, 87-, 90- or diesel grade, for $1,000.
A 40-gallon of 87- or 90-grade gas or diesel for $12,000 and 50-grade motor oil for $150 per quart.
These prices are significantly higher at an authorised gas station, which sells a litre of unleaded 87 for $68, unleaded 90 for $70 and diesel for $71.
Organised operators
The illegal operations also appear well organised. At all stations, there are lookout points, to alert workers about police activity. At one particular petrol centre, a cashier and attendant work in tandem to serve customers.
The yards are stained with oil and the smell of gasolene pervades the air. Hand pumps and oil tankers are also part of the works with metal drums strewn all over the yard, but a fire extinguisher was nowhere to be seen.
Errol Edwards, president of the Jamaica Gasolene Retailers Association (JGRA), is shocked about the impunity with which illegal service stations continue to thrive. Legitimate operators are losing millions of dollars, he says.
"While we have no evidence of the source of their products, it is reasonable to assume that the losses of some of our members have something to do with these operations," the JGRA boss argues.
Edwards believes that the police can do more to topple illicit traders.
Tanker drivers fingered
"The police carry out these raids and in a short time they are back in operation. There are known outlets in the Corporate Area. Are you telling me that these illegal forces are stronger than the force of the law?"
Edwards says tanker drivers are the middle men in the trade chain, unloading petrol at illegal centres during their delivery schedules.
"I don't know what they do, but this is an art for them and in-between loading and delivery, something happens. I am sure that all who are concerned can do more - the police, the retailers and the regulators," he adds.
March pump prices
'We need citizens to refuse from buying from these unauthorised gas stations and for citizens who are living near to these stations to report their activities, as they compromise their safety. We also need the retailers and the distributors to be more vigilant and also the contractors who own these trucks.'