7 News Belize

Butane Consultations Begin
posted (March 14, 2011)
For the past weeks - the Butane Industry in Belize has undergone massive upheaval - as fraudulent "skimming" practices were detected in an investigative report by this station - and a new law is about to come into effect which will change the way Butane vendors do business.

And by that we mean that they'll all have to use scales instead of flow meters to measure how much butane you get in your tank.

But there's another change happening and that's been afoot for some time now. It's an effort to have industry wide standards implemented which would allow you to know what grade of butane you're buying - similar to how it is for regular and premium gasoline.

Here in Belize to help with the setting up of those standards is Rolf Weiss from Germany's government regulator of the butane industry in that country.

Before a meeting with over 50 importers, sellers, regulators and other stakeholders at the Biltmore, he told us what he's here to do - and was surprised at what's currently being done:…

Jules Vasquez
"It this unusual to come into a market where there are no standards? A lot of the people are selling 100% propane. Is this unusual to encounter a market like this?"

Dr. Rolf Weiss, Consultant
"100% propane? There are mixtures here."

Jules Vasquez
"No, but I have tested it. I know people are selling 100% propane and there are people selling 90% propane and 10% butane."

Dr. Rolf Weiss, Consultant
"How did you test it?"

Jules Vasquez
"With this hydrometer.
Dr. Rolf Weiss, Consultant
Hydrometer measures the density. If that's so, I can't really believe it because normally there are mixtures between propane and butane from 40-60 percent or 30-70 percent. In Europe we use different mixtures and in certain part of Europe the mixture is so that you have more butane in the mixture because the temperatures are high and the northern part we have mostly more propane in the mixture because we have lower temperatures and its easier to use it for heating and cooking."

Marion Ali, Reporter
"Yes, but it is possible that it can be occurring especially there are smaller cylinders of propane you can buy."

Dr. Rolf Weiss, Consultant
"That's the reason why I am here."

After that the meeting started and Mike Reyes from Western Gas challenged the new scale - based regime saying that they've invested tens of thousands of dollars in their meters.

Mike Reyes, Manager - Western Gas
"What is really the difference from now saying 'the meter system ain't good, let's go back to scales.' Because basically that SI jumped in 'boom' on us and we've invested hundreds of thousands of dollars in equipment, metered equipment that comes certified from the states. And now all of a sudden there is a law that says the meter ain't good enough, buy scales. And so I am a bit concerned because my idea of meters especially for LPG is because they are made to sell by gallons which we are buying - American gallons - and so when the law was put in place I was wondering, 'So what happened to all our investments with buying equipment that is certified from the states? Now we are bringing in scales that we don't even know who calibrates scales because people are buying scales like mad men around because a law came in and we are trying to figure out how that really help the industry? Why did the government made such a rash decision - implementing a law to basically replace the meter system with scales? For me it's like going back to the dinosaur days. 28 years ago we started with scales and now we are back into scale system and I'm like?....So my question is what caused that decision? Why was that decision made?"

Jose Trejo, Dir. BZE Bureau of Standards
"Butane as it is etched in the legislation which is the supplies control regulation. It is etched in the regulations to be sold by weight, not volume. That fell into the cracks, fell under the radar. Over time, the industry transitioned itself from the use of scales to meters, so that has always been in the legislation."

Mike Reyes, Manager - Western Gas
"In Europe or in Germany, do you guys use scales to measure?"

Rolf Weiss
"Yeah, yeah. It is sold by weight. That's quite clear."

To stress what Weiss said, Germany - one of the most developed countries in Europe - also uses scales. Weiss is here from March 14th to 18th.

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