WASHINGTON -- One week after approving the event and less than 24 hours after allowing promotional banners to be hung on its property, Capitol Petroleum Group (CPG) canceled plans by the Brazilian Sugarcane Industry Association (UNICA) to offer Washington, D.C.-area residents a discount of 54 cents per gallon on gasoline purchased at two Exxon stations on Capitol Hill.
The one-day event would have highlighted the current 54-cent-per-gallon tariff on imported ethanol, which makes gasoline more expensive for Americans, said UNICA. The event would have also educated drivers [image-nocss] about the benefits of sugarcane ethanol, which the group says is a clean and affordable renewable fuel that reduces greenhouse gas emissions by at least 60% compared to gasoline and could help the United States cut its dependence on oil from the Middle East.
On May 21, a company representative, citing unspecified "political" reasons, canceled the promotion, said UNICA, which claimed to have approvals and invoices for the event.
In a statement provided to CSP Daily News, Washington-based CPG, a wholesale distributor of motor fuels in the District of Columbia and the surrounding metropolitan areas, said: "CPG is the owner of two service stations at which a promotion was planned by the Brazilian Sugarcane Industry Association to take place on Tuesday, May 25, 2010. The apparent purpose of the promotion is to bring attention to the political positions and legislative strategies of the sponsor with respect to ethanol taxes. It is CPG's policy that promotions urging political action are not appropriate activities to be held at CPG-owned stations and, for this reason, CPG management did not approve the planned promotion and will not permit it to take place on any CPG property. It is our understanding that the promotion received widespread publicity and CPG regrets any inconvenience such notoriety may have caused our customers."
Joel Velasco, UNICA's chief representative in North America, said, "Open market competition and free speech are two fundamental principles that have made the United States a global leader. It's a shame that those values don't seem to apply in this situation."
He added, "While we are unclear who caused this sudden shift in plans, one thing is certain: consumers win when businesses have to compete in an open market, because competition produces higher quality products at lower costs. UNICA will continue advocating for open market competition by encouraging Congress to end the 54-cent-per-gallon tariff on imported ethanol."
Instead of the fuel-price discount, UNICA is now planning to give away gasoline cards a first-come, first-served basis. It has not yet announced the details for this giveaway.
Meanwhile, a McClure Oil station in Indianapolis held a fuel-price discount event Wednesday through UNICA. From 1:30 p.m. to 2:55 p.m., the station offered an 85-cents-per-gallon discount on E85 and regular gasoline. IIn addition to the discount, drivers could enter to win one of 10 $50 fuel cards, see an IndyCar up close and meet Firestone Indy Lights drivers. The first 20 participants received two tickets to the Indy 500 Miller Lite Carb Day on May 28.
The discount event was made possible by UNICA's partnership with Apex-Brasil, the Brazilian Trade & Investment Promotion Agency, it said.
UNICA represents nearly two-thirds of all sugarcane production and processing in Brazil. The association works to encourage the continuous advancement of sustainable practices throughout the sugarcane industry and to promote biofuels as a clean, reliable alternative to fossil fuels.
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