[UPDATED] BAD PAY UNIPET

ACTING Energy Minister Colm Imbert says Unipet owes the Paria Fuel Trading Company more than $100 million.

Imbert, who is acting for Energy Minister Franklin Khan, who is out of the country, was responding to an urgent question from Opposition Senator Wade Mark in the Senate yesterday.

He said he would intervene in the issue, which saw Paria refuse on Tuesday to supply Unipet's 24 gas stations across the country.

Mark asked how the decision of Paria to immediately discontinue the supply of fuel to Unipet following reports of a breakdown in negotiations would affect the motoring public.

Paria, in a statement on Tuesday, said it had decided to cut Unipet’s fuel supply because the company had failed to renegotiate a supply agreement since April 2019.

It also said Unipet had defaulted on payments for September and October 2019 deliveries. NP in a separate statement said that as TT's largest service station network operator, it can provide a continuous and reliable supply of fuel across the country and advised citizens not to panic-buy fuel.

Imbert yesterday said there was no breakdown in negotiations between Paria and Unipet. He explained that when Paria was formed last year there was a short-term written contract put in place with Unipet which expired in March this year. He reported from March to October the arrangement between the two companies has been through a monthly arrangement which is executed by a letter on the same terms and conditions of the previous arrangement and signed by both sides.

He said between April and October, Unipet signed the letter and adhered to the credit terms for the supply of fuel, but in November Paria sent the usual monthly letter to Unipet, but Unipet declined to sign it.

"Unipet was given fuel in good faith by Paria. Unipet declined to pay for fuel, and owed Paria $172 million as of a couple weeks ago."

The two companies met and Unipet agreed to make a part payment of $68 million, but only paid $62 million, and still declined to sign any written arrangement with Paria.

"And it now owes Paria in excess of $100 million for fuel supplied without any written agreement."

He said Paria, the wholesale supplier of motor fuels, and Unipet were currently in negotiations and it is expected the impasse will be short, minimising any disruption to the driving public.

Mark asked how soon Imbert expected a resolution to the matter, which could have an adverse impact on the motoring public.

Imbert reiterated it was an issue of non-payment for fuel supply, and not signing an agreement which has been enforced for several months.

"As the acting Minister of Energy, it is my intention to intervene in this matter to bring some relief.

"However, we have to ensure that anybody who is supplied with fuel that is paid for by taxpayers' money pays their bills and pays them on time."

He said he hoped with his intervention to have the matter resolved in the shortest time possible.

Imbert said he was advised that NP has a network of 117 operating service stations which are strategically located throughout the length and breadth of TT, while Unipet has 24, primarily in densely populated areas also served by NP.

"I am further advised that NP has the existing capacity and capability to meet the fuel requirements of the motoring public and additional resources have been put in place in terms of the supply and the delivery of fuel at NP service stations to deal with any issues that may arise."

On Tuesday Unipet issued a statement in response, but subsequently retracted it. Yesterday Unipet sent a new statement saying "since 2000 Unipet has serviced the Petroleum market in TT at the highest commercial and industry standards.

"Unipet reaffirms its on-going commitment to engaging in meaningful and amicable discussions aimed at resolving any supply issues which may arise. The current supply impasse with the Paria Fuel Trading Company Ltd (Paria) is unfortunate and Unipet reaffirms our commitment to finding a speedy resolution. We apologise sincerely for any inconvenience which this impasse may cause to our customers and the general public.

"Unipet thanks you for your patience and is confident that soon you will be able to access products from your preferred supplier."

Newsday checked with a number of Unipet stations yesterday. They were all open and there were no long lines. It was business as usual at NP stations as well.

This story was originally published with the title "Imbert: I'll intervene in gas station impasse" and has been adjusted to include additional details. See original post below.

ACTING Energy Minister Colm Imbert says Unipet owes the Paria Fuel Trading Company more than $100 million.

Imbert, who is acting for Energy Minister Franklin Khan, who is out of the country, was responding to an urgent question from Opposition Senator Wade Mark in the Senate on Wednesday.

He said he would intervene in the issue, which saw Paria refuse on Tuesday to supply Uniept's 24 gas stations across the country.

Mark asked how the decision of Paria to immediately discontinue the supply of fuel to Unipet following reports of a breakdown in negotiations would affect the motoring public.

Paria, in a statement on Tuesday, said it had decided to cut Unipet’s fuel supply because the company had failed to renegotiate a supply agreement since April 2019.

It also said Unipet had defaulted on payments for September and October 2019 deliveries. Unipet issued a statement in response, but subsequently retracted it. NP in a separate statement said that as TT's largest service station network operator, it can provide a continuous and reliable supply of fuel across the country and advised citizens not to panic-buy fuel.

Imbert on Wednesday said there was no breakdown in negotiations between Paria and Unipet. He explained that when Paria was formed last year there was a short-term written contract put in place with Unipet which expired in March this year. He reported from March to October the arrangement between the two companies has been through a monthly arrangement which is executed by a letter on the same terms and conditions of the previous arrangement and signed by both sides.

He said between April and October, Unipet signed the letter and adhered to the credit terms for the supply of fuel, but in November Paria sent the usual monthly letter to Unipet, but Unipet declined to sign it.

"Unipet was given fuel in good faith by Paria. Unipet declined to pay for fuel, and owed Paria $172 million as of a couple weeks ago."

The two companies met and Unipet agreed to make a part payment of $68 million, but only paid $62 million, and still declined to sign any written arrangement with Paria.

"And it now owes Paria in excess of $100 million for fuel supplied without any written agreement."

He said Paria, the wholesale supplier of motor fuels, and Unipet were currently in negotiations and it is expected the impasse will be short, minimising any disruption to the driving public.

Mark asked how soon Imbert expected a resolution to the matter ,which could have an adverse impact on the motoring public.

Imbert reiterated it was an issue of non-payment for fuel supply, and not signing an agreement which has been enforced for several months.

"As the acting Minister of Energy, it is my intention to intervene in this matter to bring some relief.

"However, we have to ensure that anybody who is supplied with fuel that is paid for by taxpayers' money pays their bills and pays them on time."

He said he hoped with his intervention to have the matter resolved in the shortest time possible.

Imbert said he was advised that NP has a network of 117 operating service stations which are strategically located throughout the length and breadth of TT, while Unipet has 24, primarily in densely populated areas also served by NP.

"I am further advised that NP has the existing capacity and capability to meet the fuel requirements of the motoring public and additional resources have been put in place in terms of the supply and the delivery of fuel at NP service stations to deal with any issues that may arise."

Newsday checked with a number of Unipet stations on Wednesday. They were all open and there were no long lines. It was also business as usual at NP stations as well.