International oil  trading firms are selling fuel, petrol and diesel containing poisonous substances for consumption in Nigeria and many African countries, a Swiss-based policy lobby group Public Eye has revealed.

The group in a 160 page report published Thursday said the petrol and diesel grades shipped to Africa have been banned in Europe and the United States.

Public Eye said low fuel quality standards across Africa that allow on average 200 times the sulphur content of Europe’s fuels enable trading houses and retailers to sell dirty-but-cheaper fuels that will “jeopardise the health of millions of people.”

“Swiss traders and others maximize profits by taking advantage of weak regulations to produce and sell harmful fuels,” the report said.

“This form of regulatory arbitrage ignores the serious risks to public health.”

Here is a summary of the report:

“Based on three years of research, the “Dirty Diesel” study highlights for the first time the pivotal role played by Swiss commodity trading companies in Africa’s fuel industry and reveals the scandalous business model behind a supply chain completely controlled by these companies in their multiple roles as producers, suppliers, and — in some regions —operators of gas station networks.

 “In West Africa especially, Vitol, Trafigura and Addax & Oryx ruthlessly exploit weak regulatory standards and make the local urban populations pay with their health. 

“Public Eye researchers drew fuel at local pumps in eight countries. 

“The result was shocking: as our analysis revealed, the diesel samples contained up to 378 times more sulphur than is permitted in Europe. 

“Furthermore, other toxic substances, such as benzene and polycyclical aromatic hydrocarbons, were also found in concentrations that are also banned in Europe.

 “The 160-page report also shows that the trading companies not only ship dirty diesel and dirty gasoline — and in some areas even sell it at their own pumps — but also produce both fuels themselves. 

“On land or at sea, they mix up a petrochemical cocktail from refinery products and other components known in the industry as “African Quality”. 

“These toxic fuels are mainly mixed in the ARA-Zone (Amsterdam-Rotterdam-Antwerp) where Swiss trading firms have their own refineries and storage facilities. 

“Many West African countries that export high grade crude oil to Europe receive toxic low quality fuel in return.

“Producing and selling such products is illegitimate and violates the African populations’ right to health. According to a recent UN study, the populations in the continent’s major urban centers suffer from the most rapidly increasing levels of air pollution in the world. 

“The prestigious organization, ICCT**, estimates that by 2030 Africa will have three times as many deaths from traffic-related particle dust than Europe, Japan, and the US combined. 

“Respiratory illnesses are already a major health issue and diesel fumes can cause cancer. 

“To disarm this time bomb the governments of the affected countries need to set and enforce stricter standards. 

“But the Swiss commodity companies, too, must respect human rights wherever they do business — and comply with the UN-Guiding Principles on Business and Human Rights adopted in 2011.

“CEO Jeremy Weir wrote in last year’s sustainability report that Trafigura wants to “become acknowledged sector leaders in the way we manage corporate responsibility”. 

The company also intends to adapt its business practices to the aforementioned UN guidelines.

“In order to remind the commodities giant of its good intentions, Public Eye and its West African partner organizations will be shipping a container full of toxic air from Accra, the capital of Ghana, back to Geneva in late September. 

“With this symbolic “Return to Sender”-campaign, the NGOs are inviting Trafigura to put its money where its mouth is and stop selling fuel that does not meet European standards anywhere in the world.”

The group described the issue as a “ticking time bomb” as conurbations develop across Africa and populations boom in cities such as Nigeria’s Lagos and Ghana’s Accra.

Vitol said it complied with all government regulations, and could not control by itself the quality of fuel sold at the pump. 

The others named did not immediately respond to requests for comment.

Kenya, Tanzania, Uganda and Morocco have increased fuel quality requirements.

But the African Refining Association, a non-profit group that represents the continent’s downstream sector, said that changing the actions of the trading houses alone would not fix the problem.

“If Swiss traders followed the report recommendation today their role would be filled by (possibly less reputable) traders from other nations,” the ARA said.

 “The role of improving fuel quality in Africa clearly rests with African governments, not with the fuel suppliers.”

The ARA said it had been pressing governments in tandem with the United Nations Environment Programme.

But higher quality means higher costs, and with many countries facing severe shortages in public finances, they are wary of angering their populations with higher pump prices.

“The bottom line is that governments have competing priorities for available funds,” said David Bleasdale, executive director of CITAC Africa Ltd, a consultancy that focuses on the African downstream sector.

Report courtesy of NAN/Reuters; Send eyewitness accounts/reports/articles to publisher@elombah.com; follow us on twitter handle @Elombah; like our Facebook page: “Elombah.com”.

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