Paria and Unipet sign one-year supply agreement

A fuel tanker servicing a Unipet station along the main road Princes Town . - Lincoln Holder
A fuel tanker servicing a Unipet station along the main road Princes Town . - Lincoln Holder

After a high-profile breakup, state entity Paria Fuel Trading Co Ltd and independent gas station operator Unipet have made up, signing a one-year fuel supply agreement, effective January 1.

The agreement was signed on the last day of 2019 "following months of negotiations" but only announced on Friday via a release from Paria.

On December 3, Paria, the sole importer of fuel into TT, cut Unipet's fuel supply, claiming the company had failed to pay outstanding bills for "products delivered in September and October 2019".

The state claimed the amount owed to Paria was about $100 million. Unipet countered that the state's outstanding fuel subsidy payments amounted to over $72 million.

On December 9, both parties came to an interim settlement agreement where Paria would resume supply immediately to all 25 of Unipet's stations.

Unipet supplies approximately 30 per cent of the country's fuel while state-owned National Petroleum provides the rest.

In its release, Paria said Unipet has since met outstanding financial obligations as determined by the settlement agreement.

The new supply agreement allows for the delivery of products in 2020.

"Both companies are committed to working together in the best interest of all by ensuring there is a constant supply of fuel to the local market," Paria said.

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