Report: Basic fuel standards needed

A detailed analysis of local gas and diesel products offered by the Cayman Islands’ two largest fuel providers has found the quality of that fuel to be “acceptable.” 

However, the report by the Cayman Islands Petroleum Inspectorate also found a distinct need for “minimum standards” of fuel to be established by local regulators following consultation with the fuel industry and other stakeholders.  

“Prior to this [review by the inspectorate], there was an ‘opening’ for fuel of varying quality to be imported and marketed locally by all parties [including independent gas stations and other ‘smaller interests’],” the inspectorate report determined.  

“Quality standard, or more appropriately the absence thereof, is understood to be robbing Cayman of certain makes and models of vehicles as a result of manufacturers’ reluctance to offer such products in territories/regions which are lacking such regulations due to (performance) reputational concerns.”  

Chief Petroleum Inspector Duke Munroe recommended to government that a committee be established to develop a set quality standards for imported fuel in the Cayman Islands. 

Mr. Munroe also recommended that periodic random sampling and certified fuel analysis should be conducted for all retail fuels.  

“This process will be supervised by the Petroleum Inspectorate Department, however the cost needs to be covered by the fuel importer,” the recommendations stated.  

The fuel quality review also recommended establishing a complaints process for customers who believe the gas or diesel they purchased was substandard. Mr. Munroe acknowledged that the Petroleum Inspectorate began its investigation of local fuel quality after receiving a number of public complaints regarding vehicles being damaged – allegedly by poor quality fuel. However, those complaints, in many cases, lacked specific information and were not recorded properly anyway, the inspectorate review found. 

In conclusion, the Petroleum Inspectorate noted that the results of its review “were not indicative that the quality of fuel on the market was questionable.”  

“Clearly, however, there is the possibility of fuel being imported of varying standard and composition, which could have negative impact on customer vehicles,” the report noted.

Fuel sources 

The Petroleum Inspectorate found no restrictions exist as to where fuel products that come into Cayman can be sourced.  

“There is no requirement by the Petroleum Inspectorate under the law for any entity to produce documents to verify the quality of the source product before it is brought on shore for local consumption,” the review stated.  

The inspectorate also noted that both Esso and Rubis did internal checks prior to fuels being discharged into shore tanks on Grand Cayman. The only fuel product that has to be rechecked once it gets to Grand Cayman is aviation fuel, according to the report.  

“In [meetings with government officials], the companies reiterated their stance on the assurance of the quality of the product they are offering here in the Cayman Islands,” the report noted.  

Testing 

An evaluation of fuel at various locations around the islands, which was tested at a U.S. chemical laboratory, found only one area of concern in the commercial fuels held by Rubis and Esso on the testing dates.  

That area dealt with “existent gum,” thick gum-like materials that can form in gasoline and cause issues with fuel injection. Oxidation degradation due to extended fuel storage and some gasoline additives can lead to the formation of existent gum. However, according to what the report termed “limited technical information” obtained from local mechanics, existent gum did not appear to be a significant contributor to problems most motorists were experiencing in mid-2013.  

Another issue identified by the report, although it did not appear to affect gasoline quality, was the existence of MMT – a compound of the element Manganese – within the fuels. MMT is added to gasoline to improve its octane rating.  

Certain auto manufacturers have banned the use of MMT in their vehicles “to avoid performance, hence, warranty issues,” according to the report.  

“Due to the absence of legally mandated limits in the Cayman Islands, Rubis currently utilizes U.S. Environmental Protection Agency standards for this additive of up to 1/32 gram per U.S. gallon, while Esso utilizes treat rate consistent with allowable limits in Canada and Australia, up to a maximum of 18mg/liter concentration,” the report states. “This parameter is also flagged by [the] Petroleum Inspectorate for further research. However, so far it was found that limits set [by the U.S. EPA] on the use of this additive is primarily driven by [inconclusive] public health concerns and not necessarily due to significant vehicle performance … and argument which was strongly advanced during the review of the results.”  

Cayman Brac  

One serious concern noted for petrol stations in Cayman Brac and Little Cayman was that underground fuel tank installations there do not meet minimum standards in the fuel industry.  

“These are unapproved installation[s] and need attention to ensure environmental standards,” the inspectorate report noted. However, the installations were again not believed to be contributing to fuel quality issues.