Lagos — The Federal Government Tuesday placed an indefinite ban on Gunvor International, a Swiss based firm and a regular importer of blended petroleum products into the country.

The action followed last week's circulation of bad fuel dispensed in some parts of Lagos.

Addressing newsmen in Lagos, a Director in the Department of Petroleum Resources, DPR, Mr. Tony Chukwueke explained that the product was blended with about twenty percent of ethanol as against the statutory five percent recommended by Nigerian government.

He added that this had caused adverse effects on car engines in the country.

According to him, in a bid to also check the defects on the generality of Nigerians, the Department has ordered Oando Plc who is the Major marketers involved to withdraw the 14,000 Metric tonnes of contaminated products brought in by Gunvor.

In his word: "I got the report concerning Mobil in Lekki, Lagos Island and Apapa and it has been traced to an Oando vessel which arrived on the twenty first of February.

Subsequently, we have decided that the sanction be imposed on the importer and that the major marketers involved in the dispensation of the products should also compensate all motorists who may have experienced any form of damage from the fuel."

Reacting to the development, Oando Plc said that it received a cargo 33,000 Metric tonnes of gasoline from Guvnor of Amsterdam on the 9th of January 2008. The said company cargo got to Nigeria on the 14th of February 2008.

Spokesman of the company, Niyi Olowola told Daily Trust that the product was subjected to Nigeria 's routine tests in accordance with industry's specifications and standards upon arrival.

According to him, the result of the test showed that the product was in accordance with the laid down specification.

He explained that later there were complaints from some receivers about the product's effect on cars and the company undertook some more tests.

"These tests revealed that nothing was wrong with the specification but revealed the presence of an unspecified substance. We made further enquiries from Gunvor, who informed us that there was a high level of ethanol in the product. We requested load port samples to be re-tested and the re-test confirmed this information on the 29th of February 2008."

Olowola further stated that, the issue of high ethanol content was willfully concealed from Oando by the supplier, and it is not a material that forms part of the specifications of Nigerian grade gasoline. Oando did not test for ethanol content and there was no indication in the original certificate of quality issued at loading port of ethanol presence.

"Immediately upon receiving this information, we set every available machinery in motion to mop up the product from circulation and stop further sale of same to consumers. We have however used our best endeavors to contain the situation and we are currently working with other marketers and Department of Petroleum Resources to effectively evacuate the quarantined products to ensure that none of the product remains within the system.

"Oando is as much a victim of this unfortunate incident, as many other Nigerians who have been adversely affected by this occurrence. We have, accordingly, commenced necessary legal action with a view to ensuring that the suppliers of the product assume full responsibility and bear liability for damages caused to vehicles as a result of use of the product.

We affirm our commitment to delivering quality products to all our esteemed customers and we can confirm that appropriate mechanisms have been put in place to forestall any future occurrence of this nature," he said.

The DPR has in the meantime insisted that as part of the sanctions imposed to effect a deterrent of future occurrence, Oando would also be made to pay a fine which is equal to the amount paid for the importation of the product.