Motorists in Antigua and Barbuda would bear the cost of any increase in fuel retailers’ profit margins, Prime Minister Gaston Browne said Wednesday as service station closures disrupted gasoline sales.
Browne said the additional money would come from prices paid at the pumps rather than government funds. He maintained that dealers had been asked to wait until December for an adjustment and that the government had honoured its agreement with them.
Writing on Facebook, the prime minister said an increase should be based on a scientific assessment to limit inflationary pressures. He described the shutdown as unjustifiable.
The closures sent motorists to West Indies Oil Company stations, where increased demand caused temporary gasoline shortages at some locations. Browne said operating stations would stay open late and police Special Service Unit officers had been deployed to provide security.
Retailers, however, say their earnings are falling relative to the cost of fuel, putting their businesses and employees under pressure.
In an open letter, operators said their margin had declined from approximately 8% when they approached Browne in March to 6.38%. They put their earnings at EC$1.08 per gallon of gasoline and 95 cents per gallon of diesel.
Higher prices mean dealers must spend more to replenish supplies without earning more per gallon, they argued.
The operators cited a March 28, 2003, Ministry of Finance letter that they said confirmed Cabinet’s approval of a floating margin. They are seeking implementation of that arrangement.
They also said they had received no communication since meeting Browne on Sept. 1 and called for a promised review committee to be established immediately, with its work completed within the agreed 90 days.
Without relief, the operators warned, stations could move toward self-service, threatening jobs.
This article was originally published by Antigua News Room. Read the original article here: PM Browne Says Consumers Would Pay for Higher Fuel Margins as Operators Warn of Threat to Jobs.