Not for your Probox

The sale of 93-octane gasolene – a super-premium fuel used in high-performance sports cars – steers closer to entering Jamaica’s retail market, but petroleum marketing companies are divided on its commercial necessity.

The Bureau of Standards Jamaica (BSJ) has given interested persons until May 20 to submit comments on a proposed specification for the fuel, following a recent advertisement. The move comes at a time of heightened oil prices driven by the US-Iran conflict, but experts say it’s less about fuel economy and more about compatibility – matching the right fuel grade to engines built to demand it.

Petroleum marketing companies and dealers are currently permitted to sell only 87- or 90-octane gasolene. The octane rating is an index that indicates the likelihood of engine knock – a condition that can cause underperformance or engine damage. Performance engines are engineered to require higher-octane fuel, and running them on lower grades risks both power loss and mechanical harm.

Andrew Williams, chief executive of Regency Petroleum, said that while he welcomes the development, his company is taking a cautious stance, given the infrastructure outlay required. “The sale of that type of fuel would call for more storage tanks and extra pumps to sell the product,” Williams told the Financial Gleaner. He added that the expected size of the market would not justify the investment. “We’re talking about only a few cars, and that does not cover a large segment of the market,” he said.

Fesco, another listed marketing company, took a more bullish view. Chief Executive Jeremy Barnes said the regulation was simply catching up with existing consumer demand. “We’re happy that the motoring public has been demanding this. There are several vehicles out there that require it. It’s just the regulation catching up with the demand,” Barnes said.

He cited the latest models of the Honda Fit as among vehicles that require the higher-octane grade, and noted that some car owners have resorted to purchasing engine management computers or adjusting their engines in a step-down process to compensate for the absence of 93 octane at the pump. Barnes said the introduction of the fuel would not compel anyone to switch. “We still have the other products available. It’s just that if somebody wants to buy 93 octane, then there are regulations allowing for it,” he said.

STRAIGHTFORWARD

Barnes, whose company was represented on the BSJ technical committee that deliberated the draft specifications, said Fesco’s technical response to the standards process was straightforward. “We gave our technical responses, and the technical response is just that it should be at a minimum 93,” he said. “It’s just that the octane is different.”

The push to formalise 93-octane supply has a contentious recent history. Just over a year ago, Fesco sought to introduce the fuel to the market, but then Permanent Secretary in the energy ministry, Carol Palmer, issued a cease-and-desist order after a document seen by the Financial Gleaner confirmed that existing law restricts retail sales to 87- and 90-octane grades. Under current regulations, a dealer selling 93-octane gas cannot label or market it as such – they are legally required to label it as 90-octane, even while informing the customer verbally of the true grade.

The Financial Gleaner understands that an unregulated high-octane trade already exists, catering primarily to high-performance and racing vehicles. “In the heat of a race I want to know that I have the best fuel, so that I get the performance I want without risking engine damage,” said one industry insider, who declined to be named.

Petrojam, the state agency responsible for fuel supply, signalled its readiness to adapt. Communications Manager Elon Parkinson said Petrojam had participated in the BSJ technical committee and contributed to the specification of key parameters for 93 octane. “As Jamaica’s primary fuel source, we commit to fulfilling our mandate to always meet the country’s energy needs. This includes the introduction of new varieties of fuels in response to our customers’ changing needs,” Parkinson said.

neville.graham@gleanerjm.com