We Need a Constitution of the Bunker Industry, Says Muhtaroglu

Mustafa Muhtaroglu, Chief Executive of Energy Petrol

As part of efforts to reduce malpractice in the bunker industry, the terms and conditions of all bunker contracts should start by stating the parties will respect each other and comply with a code of ethics, Mustafa Muhtaroglu, the founder of Turkish physical supplier Energy Petrol, has told Ship & Bunker.

"I believe this will solve most of the industry's problems with malpractice," he says.

Muhtaroglu, who has been in the industry for over 30 years and served as part of the International Bunker Industry Association (IBIA) for ten of those, says he has seen "thousands of cases" of malpractice that have happened "due to the calibre of the people involved."

"It is very obvious to me that we can solve most of the industry's problems by increasing the intellectual capacity of the individuals involved in it. Many of the cases that have been brought to my attention simply would not have happened if basic humansense and ethical rules were in place," he told Ship & Bunker.

"I do believe half of the problems we face can be solved if both parties respect each other and promise to act by a code of ethics."

Such a scheme of ethics would be most easily implemented if driven by the buyer, says Muhtaroglu.

"How many individual persons are buying bunkers in the market every day? 1,000? Can we not find and educate 1,000 people to act according to some basic ethical rules?"

Muhtaroglu also notes that some buyers are responsible for fleets of hundreds of ships, and there are also several pools buying bunkers for many ships that are managed by just a few professionals.

On the selling side, the average bunker trading houses employ about 10 to 15 traders, he estimates.

"So the total number of people is not enormous. If we can have just a few hundred people who are knowledgeable, professional, experienced and respecting ethic and moral rules then we can have a much better bunker industry," says Muhtaroglu.

"How to start this? I suggest to have a Constitution of the Bunker Industry, and this is something I will propose to IBIA at the first board meeting."