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  • 2 years ago
Gas station owners have been searching for answers to some pressing questions regarding why they have been required to pay for more gasoline than they have been receiving on paper from Unipet.

For many years, they have been fighting an uphill battle to get the government to step in and make sure that everything is above board, and that they are treated equally.

In this TV6 News Investigative piece, 'Shortchanged', Investigative Journalist Mark Bassant takes a deep dive into the issues- where answers are still needed.
Transcript
00:00 [MUSIC PLAYING]
00:03 For more than three years, gas station dealers
00:14 under the umbrella of Unipet say they have
00:16 been a victim of the system.
00:18 They allege that Unipet has been shortchanging them for years.
00:23 Most argue that they have been paying for more fuel
00:25 than they have received and have also not benefited
00:28 from the standard temperature accounting, or STA.
00:32 This has left some in financial distress,
00:36 triggering some to close their doors,
00:38 while others have been forced to hand over their operations
00:41 to Unipet until they can clear their debt.
00:44 But in spite of these challenges,
00:46 these gas station dealers wonder just you.
00:50 The contention from many of these gas station dealers
00:53 who spoke to TV6 News during this month's long investigation
00:57 not only dealt with the alleged inflationary voices
01:00 by Unipet, but also the standard temperature accounting system.
01:04 Unipet, for this story, refused to answer any questions sent
01:07 to them, and we'll explain why later.
01:10 So what exactly is standard temperature accounting?
01:13 STA is normally used on the international market
01:16 when fuel has been sold from a refinery to a purchaser,
01:19 in this case, an international supplier selling to Paria Fuel
01:22 Trading Company Limited.
01:24 Standard temperature accounting introduces a correction
01:27 whereby fuel is sold according to what its volume should be
01:30 at a temperature of 15 degrees.
01:33 The contention for the dealers is
01:34 what happens when the gasoline leaves Paria?
01:38 Usually, Paria would generate a product order and customs
01:41 excise form after the road tanker wagons belonging
01:44 to Unipet are filled up.
01:46 And the STA is applied here to the wholesaler,
01:49 in this instance, Unipet.
01:51 They claim Unipet then generates a new invoice
01:54 with a different volume, which is then
01:56 delivered to the gas station dealer or retailer.
01:59 And herein lies the impending problem,
02:01 according to gas station owners, who
02:03 spoke to us but didn't want their likeness or voices used
02:06 for fair victimization.
02:08 In these reenacted interviews, the owners' dealers
02:11 explained their predicament.
02:14 In Trinidad and Tobago, Paria is the only importer
02:17 of fuel for distribution and, as such, benefits from the STA.
02:22 The issue occurs when fuel is being sold within Trinidad
02:25 and Tobago.
02:26 It enters the government-controlled pricing
02:28 regime.
02:30 There does not exist an avenue for an entity
02:33 to alter the volume of fuel, as this is a control system.
02:38 At the moment, Unipet is being given the STA
02:41 for the fuel they purchase.
02:43 This volume of fuel being purchased for the retailers
02:47 is also accompanied by a customs document
02:50 required for the delivery of fuel
02:53 to the retailer's location.
02:56 What Unipet is doing is calculating the expansion
02:59 of the fuel from the STA correction.
03:02 This contradicts the control pricing system,
03:05 as it allows Unipet to invoice for a larger volume.
03:09 This alleged fraudulent activity allows
03:12 Unipet to benefit financially from the inflation of invoices.
03:17 To put into context, Unipet may be
03:20 invoiced 41,000 liters of fuel from Paria
03:24 and provide an associated customs document.
03:27 However, they bill a gas station with an inflated invoice
03:31 of 42,000 liters, thereby benefiting on the price
03:34 of 1,000 liters of fuel.
03:37 TV6 News obtained several customs and excise forms
03:40 as generated by Paria and invoices from Unipet,
03:43 showing the disparity many of the gas station dealers
03:46 were confronted with.
03:47 In one instance in 2023, the customs document from Paria
03:51 had 41,509 liters, yet the invoice from Unipet
03:55 read 41,987 liters, a difference of 478 liters.
04:02 In another instance of another gas station owner in 2021,
04:05 the customs document read 9,698 liters,
04:10 but Unipet's invoice was for 10,000 liters.
04:13 And in yet another document from another owner,
04:16 the customs document from Paria was 41,613 liters,
04:21 while the Unipet invoice was for 42,600 liters.
04:25 One gas station owner spoke about the disparity
04:28 many of them had been facing without any recourse.
04:31 In 2020, we realized that they were getting the STA
04:35 with the dealer's input.
04:36 This company was forged by dealers,
04:38 for dealers to address certain issues,
04:41 like shortage of gas and problems for maintenance
04:44 and delivery problems.
04:45 And we realized that this company was getting the STA
04:48 and was not giving back to dealers
04:50 because we lose gas in many ways, like evaporation.
04:54 When trucks transport gas, when it's in store in the tank,
04:58 there is loss and they have been receiving this STA
05:01 and we have been losing and they demand we pay for what we get.
05:06 If the delivery for us is 8,400 liters of gas,
05:10 but Paria is saying they send 8,300 liters
05:13 and in all they would like us to pay for 8,350 liters in gas.
05:19 So they implemented a 0.05 system since 2014.
05:24 Yet because of the STA, that was supposed to be abolished
05:28 and we supposed to be paying for either what we get
05:31 or what Paria says we get.
05:33 We paying twice of it because they are benefiting
05:36 from Paria and they are also benefiting from us.
05:39 Every month you are losing 30,000 in fuel
05:42 and at the end of the year is like over 300,000,
05:46 whereas this company benefiting over 1 million in the STA.
05:51 In 2021, one Unipet gas station owner even wrote to Paria
05:56 stating that they had observed, open quote,
05:59 inconsistencies in quantities being invoiced
06:02 by the fuel wholesaler, close quote.
06:05 They also asked Paria to verify the volume of fuel
06:07 loaded to Unipet's road tanker wagons
06:10 destined for this particular gas station
06:12 between October 2020 and August 2021
06:15 and also asked Paria for information
06:18 about how the fuel is measured
06:20 before it's loaded into the road tanker wagons.
06:23 But Paria later responded stating
06:24 they could not facilitate the dealer's request
06:27 since that was a confidential agreement
06:29 between Paria and Unipet.
06:32 One gas station owner asked whether Unipet
06:35 could have been calculating the fuel received
06:37 based on the expansion difference of 27 degrees,
06:41 hence the difference in Unipet's invoice.
06:44 He said if this was so, it would be indirect contravention
06:48 of the Ministry of Energy Act that Unipet is regulated by
06:52 and the Ministry of Finance by which Unipet is governed.
06:55 Questions were also raised as to whether
06:56 these road tanker wagons had been calibrated
06:59 since these higher volumes allegedly being voiced by Unipet
07:03 could also likely be in direct violation
07:06 of the Meteorology Act.
07:08 This legislation provides a framework
07:10 for a new measurement system
07:11 and is overseen by the Trinidad and Tobago Bureau of Standards
07:14 which is under the Ministry of Trade and Industry.
07:17 However, one Unipet dealer did write to the Bureau of Standards
07:20 in late 2021 asking if the RTWs were calibrated and certified.
07:26 However, a senior official of the Trinidad and Tobago
07:28 Bureau of Standards replied stating,
07:31 "At this time, TTBS does not have the capability
07:34 to verify road tanker wagons.
07:37 The verification of RTWs is a measurement area
07:40 we are currently working on."
07:43 To date, TV6 News understands that this has not changed
07:46 and this remains a major concern for gas station owners.
07:50 These gas station owners have also expressed concern
07:53 about Unipet's alleged inability to finish them
07:56 with the customs document or certificate
07:59 that is filled out by Paria
08:00 and addressed to their respective gas stations.
08:03 Many alleged that this document has been withheld by Unipet
08:07 for the most part since 2021.
08:09 They explained this document must be given
08:12 to the gas station owner as evidence of the purchase of fuel
08:15 from a licensed manufacturer.
08:17 In light of illegal fuel bunkering,
08:19 gas station owners said this document was also important
08:22 to ensure proper record keeping of fuel delivered
08:25 when Ministry of Energy inspectors
08:27 and customs and excise officers visit their gas stations.
08:32 On February 7th, TV6 News sent 12 comprehensive questions
08:35 to Unipet's CEO, Dexter Riley,
08:37 asking for answers by February 16th
08:40 on the matters raised by several of the gas station owners.
08:43 Some of which included,
08:45 "Can Unipet explain why fuel sold by Paria to Unipet
08:48 for the gas stations has been invoiced to the dealers
08:51 at a higher volume by Unipet?
08:53 Do you believe that these invoices
08:55 have been fraudulently inflated?
08:57 Is there the likelihood of fraudulent,
08:59 inflated invoices occurring under your watch
09:02 that you may not be aware of?
09:04 Is Unipet using different methods
09:06 to calculate the volume of fuel delivered
09:07 to specific stations to the detriment of others?"
09:11 On February 16th, Mr. Riley contacted TV6
09:13 in a three-way WhatsApp call
09:15 and indicated that Ms. Denise Deming
09:17 was the company's communications consultant
09:21 and would be assisting in answering the questions.
09:23 Mr. Riley then left the phone conversation
09:25 to return to a meeting.
09:27 Ms. Deming told TV6 News that there were certain questions
09:30 that they were unable to answer due to a court matter.
09:33 TV6 News indicated that they would be guided by that
09:36 and requested that she answer the questions she can.
09:39 She even asked this journalist to hold off on the story.
09:42 And I indicated to her that the story will be broadcast
09:44 within the next two weeks,
09:46 as sufficient time had been given for Unipet
09:47 to answer the relevant questions.
09:49 And this was a matter of public accountability.
09:52 Ms. Deming concluded the telephone interview
09:54 indicating she would see how best
09:56 she could facilitate the request.
09:58 A few hours later, Ms. Deming sent this legal letter
10:00 from Unipet's lawyers stating, "We have the view
10:04 that some of these issues raised,
10:05 touched on concerned matters
10:07 that have been litigated before the high court.
10:09 Notably on November 28th, 2023,
10:12 Unipet successfully registered an application
10:15 for an interim injunction related to issues
10:17 in relation to some of these matters.
10:19 In light of the above, we advise that this is not possible
10:22 for your requests to be dealt with
10:23 by our client at this stage."
10:26 Unipet's lawyer even threatened legal action
10:28 as they concluded a letter.
10:30 In reference in the November 2023 matter
10:32 considering an injunction, TV6 News checked the courts
10:36 and found out it involved a certain gas station dealer
10:38 filing an injunction against Unipet.
10:41 The purpose of the particular injunction
10:43 was to reestablish supply to his gas station
10:45 as Unipet had terminated his supply due to unpaid bills.
10:49 TV6 News was further informed
10:51 that the gas station dealer was unsuccessful
10:54 in his application as the judge dismissed this matter.
10:58 The matter, according to the dealer
10:59 who TV6 News later contacted, was then closed
11:02 and he did not appeal the matter.
11:04 The questions that TV6 News sent to Unipet
11:07 were no related to this specific matter at hand,
11:10 but based on salient questions
11:12 surrounding the delivery of the gasoline,
11:14 questions centred around the STA
11:16 and the issue of alleged inflated invoices
11:19 as evidenced by several documents obtained by TV6 News.
11:23 The only other court matter TV6 News understands
11:25 before the court of appeal is a matter brought
11:28 by a gas station dealer against Unipet
11:30 for allegedly trespassing,
11:32 which also has no bearing on the questions
11:34 sent by this station.
11:36 And there was one other matter
11:37 that had no relation to Unipet.
11:39 TV6 News sent three questions
11:41 to Paris Communications Lead Nerissa Fivic
11:44 asking if there existed a supply agreement
11:46 between Paris and Unipet
11:48 and whether the STA was part of the supply agreement
11:50 between Paris and Unipet.
11:52 On February 16th, via email,
11:54 Fivic responded on behalf of Paris stating,
11:57 open quote, "We confirm that Unipet is a customer.
12:00 "However, we are precluded from disclosing any information
12:03 "in respect of the arrangement
12:05 "given our confidentiality obligations."
12:07 Close quote.
12:09 These questions were sent to the Ministry of Energy
12:11 and Energy Industries on February 7th
12:13 to the Director of Downstream Gas.
12:15 And we were later directed to email the questions
12:17 to the Ministry's Permanent Secretary,
12:19 Penelope Bradshaw-Niles, asking mainly,
12:22 is there a present supply agreement
12:24 between Paris and Unipet?
12:25 If so, has it been reviewed?
12:27 And if not, when is the supply agreement
12:28 to be finally drafted?
12:30 Has the Ministry of Energy been made aware
12:32 that over the last few years
12:33 that Unipet has been allegedly altering the volumes
12:36 being received from Paris
12:37 and have been invoicing the gas stations?
12:40 Can you provide the legitimate requirements
12:42 that Unipet must abide by
12:44 for their wholesale marketing license?
12:46 The Energy Ministry did not answer the questions
12:48 up to the time of this broadcast.
12:50 However, in documents obtained by TV6 News,
12:52 last, the Ministry of Energy had been asked
12:54 similar questions about the supply agreement
12:57 and the wholesale marketing license
12:58 through the Freedom of Information Act
13:00 by a gas station owner.
13:02 In May 2022, they indicated to the owner,
13:05 "The Ministry of Energy and Energy Industries
13:08 "is not in possession of documentation
13:09 "evidencing a supply agreement
13:11 "between Paria Fuel Trading Company Limited
13:14 "and United Independent Petroleum Marketing Company Limited."
13:18 They added, "Information pertaining
13:20 "to standard temperature accounting
13:22 "is unable to be provided
13:23 "given that the Ministry of Energy and Energy Industries
13:26 "is not in possession of a document
13:28 "evidencing a supply agreement
13:29 "between Paria Fuel Trading Company Limited and Unipet."
13:33 However, two months later in a follow-up correspondence,
13:37 the Ministry of Energy provided a clarification letter
13:40 where they said that, close, four of the
13:41 Hougelsen marketing license states, open quote,
13:44 "The license authorized the licensee
13:46 "to purchase liquid petroleum fuels
13:48 "from the refinery or other entity
13:51 "approved by the Ministry of Energy
13:52 "and Energy Industries," close quote.
13:55 How then was it possible that the Ministry of Energy
13:57 and Energy Industries is responsible
13:59 for the enforcement of a wholesale marketing agreement
14:01 but does not have a copy of the supply agreement?
14:05 One gas station owner said,
14:06 "Because of this entire situation,
14:08 "some of them are now owing Unipet sums
14:10 "that have gone into six figures and beyond."
14:14 Many dealers raised this concern with Unipet
14:16 and they refused to acknowledge various legal letters.
14:20 Some of us told them we were only going to pay
14:22 for what we receive and they never replied to us.
14:26 The Ministry of Energy and Energy Industries
14:28 is fully away and the Petroleum Dealers Association.
14:32 The last we heard, the Ministry of Energy said
14:35 they're looking into it
14:36 and that was almost two months ago.
14:39 We should be paying for what fuel we get from Paria,
14:42 the amount we are being billed by Paria
14:44 and sent on road tanker wagons to our gas stations.
14:49 What happens if Unipet is in breach
14:50 of the wholesale marketing license?
14:53 What provisions will be then made for dealers
14:55 under the Unipet umbrella for gasoline supply?
14:58 A question that only the government can answer.
15:03 Mark Besant, TV6 News.
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