Negotiations on increased profit margins for gas station operators in Antigua and Barbuda are scheduled to begin this week, with Prime Minister Gaston Browne maintaining a Nov. 30 deadline for resolving the dispute.

Speaking on the Browne and Browne Show on Saturday, Browne said the financial secretary had written to dealers and would lead the negotiating committee.

“I know that the financial secretary has written to them. Their meeting next week. The first meeting will take place next week,” he said.

Browne said the government remained committed to granting an increase, but the amount would depend on an analysis of operating costs and the wider petroleum sector.

“We’re committed to have the matter resolved by the end of November, which was the original date. So we have not asked for any extension of the date. We have not changed our position,” he said.

The talks follow a shutdown by service station operators that disrupted fuel supplies and sent motorists searching for outlets that remained open.

Browne said he had requested 90 days during a Sept. 1 meeting with dealers to determine an appropriate adjustment. He described the understanding reached at that meeting as a gentleman’s agreement.

He acknowledged that the government should have moved more quickly to begin negotiations and respond to the operators.

“I take responsibility as a prime minister. We should have gotten back to you sooner. I apologise,” Browne said, recounting a conversation with a dealers’ representative.

He said the negotiating committee’s chair had apparently not received the Cabinet decision authorising the process. Browne also confirmed receiving a more recent letter from dealers and said he directed the Cabinet secretary to contact the committee.

However, he maintained that the delay did not justify closing stations, particularly when operators could have contacted him directly.

“If it is that they wanted to at least ensure the commencement of the negotiations and they tried to pressure us, and they did write to us, and I got on to the officials and asked them to please execute, I can understand that,” he said. “But I felt that the further action to close the stations, they took it too far.”

Browne said the review would extend beyond retailers because wholesalers and fuel haulers were also seeking increases.

He argued that the government needed to assess those requests together because petroleum costs affect prices throughout the economy.

The prime minister said he hoped lower fuel acquisition costs by the end of the negotiating period could help cushion the effect of a higher dealer margin on motorists.

“Ultimately, whatever increase they get, who do you think will pay it? The consumer,” he said.

Browne said the government recognised that operators faced higher expenses, including increased wages, and had already agreed that an adjustment was warranted.

He also expressed support for moving to a floating margin, while cautioning that dealers would face lower returns if fuel prices subsequently fell.

“They will get an increase, but it will be determined by scientific analysis and not arbitrarily,” he said.

This article was originally published by Antigua News Room. Read the original article here: Gas station margin talks expected to begin this week, with Nov. 30 deadline.