Lifeline for gas stations as NP gets suspension order

A COURT of Appeal judge has suspended High Court declarations and orders which would have had severe consequences for National Petroleum’s (NP) service stations.

On Friday, Justice Vasheist Kokaram granted the order to NP, the state-owned gas supplier, after the Petroleum Dealers Association (PDA) did not resist the application.

The suspension of Justice Avason Quinlan-Williams' orders covers the hearing and determination of NP’s appeal and a separate appeal by the Minister of Energy. The hearing of the two appeals, which were consolidated, is set for June 9, 2023.

In May, Quinlan-Williams ruled on a judicial review claim by the PDA challenging late energy minister Franklin Khan's decision to grant NP a retail marketing licence for a gas station in Diego Martin.

In its application for the suspension order, NP warned the court’s declarations would have severe consequences on its business operations, in particular 67 of its service stations, and “will affect the travelling public” and compromise TT’s fuel security.

NP said the judge’s declarations brought into question the legitimacy of the terms and conditions of contractual arrangements of gas stations run by dealers.

On June 17, NP, which was an interested party in the claim at the High Court, filed its notice of appeal.

In its application, NP warned about the immediate and practical effects of Quinlan-Williams’s declarations. It said each dealer would be required to obtain its own retail marketing licence, and while they waited for that, the gas stations could not operate, “which will impact the delivery and availability of fuel to the public.”

Disruption in operations would also have a severe financial impact on NP and affect its ability to continue business generally, the application further noted.

NP said this was not limited to the supply of fuel to service stations but also applied to jet fuel, marine fuel, lubricants, LPG (cooking gas), greases and other products.

Closure of the service stations would not also affect other businesses with which NP has commercial partnerships for quick service, such as fast-food restaurants and banks

It also said any adverse impact on its profitability would be detrimental to the shareholder – the corporation sole.

“There will be a resultant loss of revenue to Government not only as the shareholder but in relation to all other taxes and levies which are payable by NP on its revenues.”

NP is represented by attorneys Russel Martineau, SC, Kelvin Ramkissoon and Gregory Armorer. The PDA is represented by a team led by Senior Counsel Fyard Hosein.