Guyoil out of fuel again

Mar 06, 2013 News

– dealers accuse company’s management of gross arrogance

By Dale Andrews

Petrol dealers contracted to the Guyana Oil Company Limited (Guyoil) are up in arms over what they described as the arrogance displayed by the senior management of the state-owned oil company.
The situation stems from the company once again running out of fuel, especially gasoline, to supply its clients, most of whom have had to shut down operations and incur dire financial consequences.
The dealers have been without gasoline on and off for the past three weeks, and such is the alleged arrogance of the Guyoil management that the dealers do not even know when their fuel supply will be regularized.

Guyoil’s Managing Director Badri Persaud

They complain of having to join long queues with their trucks (those who have), only to be told after several hours of waiting that there was no gasoline. The dealers from the West Coast of Demerara to the West Coast of Berbice put the blame squarely at the feet of the company’s new senior management, noting that “since they take over, this problem has been occurring.”
Most of the dealers have indicated that although they sell about 10,000 gallons of gasoline per week, the company has been limiting them to less than half of that amount, and since their business is heavily dependent on the volume of sales, the state of affairs has some of them facing bankruptcy, which could result in several persons becoming unemployed.
At least two of the dealers have indicated that for the past three weeks they were “fortunate” to get 4000 gallons of gasoline to start the week, and within two days, they have to be making excuses to customers after their supplies ran out.
“We suffer so much embarrassment; it’s as if we are managing our business badly when it’s the other way around. Customers come in and tell us things like ‘why you don’t sell out de gas station and tek de money and buy gas?’ “ one of the dealers explained.
The dealers disclosed that efforts to meet with the company’s Managing Director Badri Persaud and the Terminal Manager are always unsuccessful.
“You can’t even ask them when the situation will end. There is this wanton disregard for the clients,” another frustrated dealer pointed out.
This newspaper has also been trying to contact Guyoil’s Managing Director, but all calls were greeted with the responses “he is in a meeting.” “He’s not available”.
The current situation is not affecting the Guyoil-owned gas stations, since they are given preferential treatment whenever the situation reaches crisis stage.
Kaieteur News understands that Guyoil recently acquired another vessel to bring in its fuel supply, but a reliable source at Guyoil has indicated that the vessels seldom bring in its actual capacity of fuel.
In addition, Guyoil has expended millions of dollars to install two additional fuel storage tanks at its Providence, East Bank Demerara terminal and according to the source, who asked not to be named, it remains a white elephant as it is seldom used.

Several privately-run Guyoil Fuel Stations have had to put up signs like this

Fuel dealers are also lamenting the fact that private fuel dealers who are not contracted to Guyoil are given better treatment with regards to the distribution of fuel. They claimed that during a fuel crisis like the present one they are prohibited from buying fuel from other suppliers, even if it means having to temporarily close down their operations.
“When Guyoil has enough fuel, they sell to everybody – their friends – but when they don’t have, they still giving the non-contracted dealers, who have the option to buy elsewhere. We don’t have that option,” one of the dealers explained.
The dealers are of the firm belief that the Guyana Oil Company officials are trying to ration their sales and limit the meagre profits they try desperately to make.
“They told us that whenever Guyoil runs out of fuel, we must close down,” one dealer pointed out.
Another pointed to the gross arrogance of a senior company official who boasted that “Guyoil does not need the dealers because Guyoil has enough (fuel) stations to sell off the fuel we have.”
Presently, the private Guyoil dealers make a paltry $7 profit per litre of gasoline and this has to take care of overhead expenses such as staff payments and electricity.
This is compared to the $20 per litre profits made by dealers contracted to other fuel companies.
“Right now Guyoil got us like Economists. We have to be experts in Mathematics to survive. We have invested millions and this is the return we get,” one of the affected dealers declared.
According to the dealer, if a station runs out of gasoline, as is the case these days, the other related businesses like the Guyshops suffer, because no one comes into the facility.
They lamented that their efforts to have the President or the Prime Minister intervene on their behalf have been frustrated.
“We try the president and fail. As soon as they hear that it’s about gasoline, they suddenly become not available,” a fuel station owner lamented.
Guyoil is involved in the importation, storage, distribution and marketing of motor gasoline, gasoil, kerosene, fuel oil, Castrol lubricants and bituminous products. The products are distributed through the largest distribution network in the petroleum business in Guyana, comprising 36 dealer-owned and seven Company-owned service stations.
These are all serviced by its three terminal locations in Regions Two, Four and Six.