Contaminated Fuel: Oando to sue Manufacturer
Contaminated Fuel: Oando to sue Manufacturer – In the bid to ensuring that the suppliers of the product are held responsible for all actions for which they are culpable, Oando has commenced necessary legal action against the company.
Oando appreciates the fact that this experience has been very unsavoury for the customers and has dampened customer confidence. We aim to not only show that there was no negligence on the part of our company but also that relevant information that would have determined a different course of action was withheld from us. Oando is as much a victim of this unfortunate incident, as any other Nigerian who has been adversely affected by this occurrence.
We affirm our commitment to delivering quality products to all our esteemed customers and we can confirm that the appropriate mechanism have been put in place by the industry to forestall any future occurrence of this nature. There was nothing to be done under our present import process that was left undone. We relied on the expertise of a known manufacturer who had produced for us in the past without any incidence or cause for complaint and who is also a supplier to other trading companies and the NNPC and had no reason to suspect or be on notice as regards their capacity, competence or intentions.
On 14th February, 2008, Oando delivered to Nigeria 33,000 metric tons of gasoline imported from Gunvor International BV Amsterdam, in accordance to all laid down procedures and regulations for the importation and delivery of petroleum product in Nigeria. At the Nigerian jetty the product was subjected to Department of Petroleum Resources (DPR) routine tests in line with industry specifications and was found to meet set and prescribed standard. It was compared with the certificate of quality issued at load port to ensure that there had been no material change in transit, on confirmation that the product was the same as what was loaded, it was approved for discharge. All these steps were in line with the nations laid down procedure.
However, by the 25th of February, there were reports of consumers’ vehicles performing unsatisfactorily after purchasing the fuel within the Lagos Metropolis. Further tests were undertaken but all the known testing parameters appeared normal although by this time the presence of an unspecified substance had been identified. We asked our suppliers what this material could be and we were informed that it was ethanol for the first time. We asked for the samples at load port to be retested for the ethanol level and on the 29th of February 2008, we were given a result of 20%.
The fact that the product contained a high content of ethanol was not reflected in the original certificate of quality issued at the load port nor was it revealed to us by the supplier prior to the 28th of February 2008. Ethanol is not tested for in Nigeria, as it does not form part of the published specification of Nigeria grade of gasoline. As a result, neither the regulatory authorities nor ourselves could have been put on notice to test for it or envisaged its presence in the product.
Ethanol is primarily a supplement to gasoline, it boosts the octane level and meets environmentally friendly requirements for oxygenated fuels. However, 20% ethanol content (E20) is well in excess of the limits acceptable in Europe (5%) and the United States (10%). E20 is presently consumed in 9 countries in the world namely Brazil, Canada, Sweden, India, Thailand, Columbia, Japan, Australia and the Phillipines. These countries have infrastructure, storage and dispensing facilities as well as vehicle engines specifically designed to contain and utilise this level of ethanol.
On obtaining information on the high content of ethanol in the product Oando commenced recalling the product in trucks in transit and removal of same from petrol stations and quarantining same in readiness for evacuation out of the country.
We regret this incident and assure you of our total commitment to responsible service delivery at all times. The evacuation process has been concluded and our service stations are at your service.
