Jamaica moves closer to 93-octane fuel rollout as BSJ opens public comment window

Jamaica is inching toward retail availability of 93-octane gasolene, a super-premium grade tailored for high-performance vehicles, though petroleum marketers remain split on whether the local market warrants it.

The Bureau of Standards Jamaica (BSJ) recently advertised a proposed specification for the fuel and has set May 20 as the deadline for public comment. The development arrives against a backdrop of climbing oil prices linked to tensions between the United States and Iran, but industry observers stress that the rollout is really a question of engine compatibility rather than fuel economy — high-performance engines are designed to demand higher-octane fuel.

Under existing law, only 87- and 90-octane gasolene may be sold at the retail pump. Octane ratings measure a fuel's resistance to engine knock, a phenomenon that can sap performance or damage an engine outright. Vehicles built for performance typically require higher grades, and feeding them a lower octane risks both reduced power and mechanical wear.

Andrew Williams, chief executive of Regency Petroleum, said his company supports the regulatory progress but is treading carefully because of the capital required to stock the new product. “The sale of that type of fuel would call for more storage tanks and extra pumps to sell the product,” Williams told the Financial Gleaner. In his view, the projected demand is too narrow to justify the spend. “We're talking about only a few cars, and that does not cover a large segment of the market,” he said.

Fesco took a more enthusiastic position. Chief Executive Jeremy Barnes argued that the regulatory shift is essentially catching up with what motorists already want. “We're happy that the motoring public has been demanding this. There are several vehicles out there that require it. It's just the regulation catching up with the demand,” Barnes said.

He pointed to newer Honda Fit models as examples of cars that need the higher grade, and noted that some owners have turned to aftermarket engine management computers or step-down adjustments to cope with the absence of 93-octane fuel at local stations. Barnes added that bringing the new grade to market would not force anyone to change pumps. “We still have the other products available. It's just that if somebody wants to buy 93 octane, then there are regulations allowing for it,” he said.

Fesco, which sat on the BSJ technical committee that worked through the draft, kept its input simple. “We gave our technical responses, and the technical response is just that it should be at a minimum 93,” Barnes said. “It's just that the octane is different.”

The path to formal approval has not been smooth. About a year ago, Fesco attempted to launch 93-octane sales but was halted when then Permanent Secretary in the energy ministry, Carol Palmer, issued a cease-and-desist order, citing a document — seen by the Financial Gleaner — that confirmed retail sales are confined by law to 87- and 90-octane grades. As things stand, a dealer offering 93-octane fuel must label it as 90-octane while disclosing the actual grade verbally to the buyer.

The Financial Gleaner understands that an informal high-octane market already operates in Jamaica, supplying mainly racing and performance vehicles. “In the heat of a race I want to know that I have the best fuel, so that I get the performance I want without risking engine damage,” said an industry insider who asked not to be identified.

State-owned supplier Petrojam has indicated it is ready for the change. Communications Manager Elon Parkinson said the agency was part of the BSJ technical committee and helped shape key parameters in the draft specification. “As Jamaica's primary fuel source, we commit to fulfilling our mandate to always meet the country's energy needs. This includes the introduction of new varieties of fuels in response to our customers' changing needs,” Parkinson said.