On August 30, BASF Corporation., one of the world’s largest chemical producers, sent letters to its oil and gas customers in North America declaring force majeure on the sale of Gasoline Performance Packages (GPP) sold under the Keropur® brand name. The notice was a consequence of BASF’s supplier suffering a shortage of raw materials and additional unforeseen production issues, thereby causing a significant reduction in supply to BASF.
The five main products impacted, Keropur® AP 205-15, Keropur AP® 205-20, Keropur® AP 205-30, Keropur AP® 297-15, and Keropur® AP 297-20, are different gasoline detergent additives required to be mixed with gasoline and diesel motor fuel by the Environmental Protection Agency and 40 CFR 80, Subpart G. Because BASF controls a significant portion of the market share of detergent additives, the halt in sales and drastic reduction of supply in the market present a logistical and regulatory challenge for ILTA members in the coming months.
Getting ahead of the issue, ILTA secured a preliminary meeting on September 22 for its members with EPA’s Office of Civil Enforcement to detail the extent of the issue. Terminal operators discussed the scope of problem with EPA’s experts, highlighting that many would run out of detergent additive in the next few months. Without an adequate detergent additive supply, many terminal facilities would be forced to stop the sale of gasoline products in order to remain EPA compliant, potentially causing a gasoline and diesel shortage over the winter period.
ILTA is continuing to monitor this issue and is furthering its dialogue with the EPA. If you are interested in joining ILTA’s Gasoline Additive working group, please email Jay Cruz: jcruz@ilta.org.