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.
ILTA again met with EPA in October to discuss the developing situation. As it stands, there remains a disconnect between what BASF has told its customers and what it has told EPA in terms of the amount of additive it can supply. Regardless, both EPA and ILTA are committed to finding a feasible solution so as to avoid widespread gasoline shortages. EPA continues to talk with BASF about its production issues and will be reaching out to ILTA again in the coming weeks.
Likewise, ILTA will be meeting with the National Association of Truck Stop Owners and the Society of Independent Gasoline Marketers of America in November to establish a common understanding up and down the gasoline supply chain.