Committee to Review Fuel, Propane and Dealer Margins

A committee comprising fuel wholesalers and retailers will examine the entire petroleum pricing system as the Government considers demands for higher margins from service-station operators, importers and cooking-gas distributors.

Prime Minister Gaston Browne announced the review on Saturday, days after several gas stations temporarily closed as dealers pressed the Government to address their operating costs.

Browne said the dealers’ request for an increase was not necessarily unreasonable, particularly given increases in the minimum wage, electricity expenses, staffing costs and card-processing fees.

However, he maintained that the timing of the industrial action was inappropriate because the Government was already absorbing millions of dollars in international fuel increases.
The review will extend beyond retail gas stations.

According to Browne, the West Indies Oil Company, which imports petroleum products, is also seeking an adjustment to its margin. Rubis, which supplies several stations, has reportedly raised similar concerns.

Operators transporting liquefied petroleum gas have also asked for increases, while WIOC has told the Government that it is making a loss on propane.

Browne said that claim could be credible because Antigua and Barbuda has maintained some of the lowest cooking-gas prices in the Caribbean.

The committee will therefore examine the financial position of wholesalers, retailers and transport operators before recommending a new pricing structure.

Browne said the Government intends to work towards greater parity and sustainability, although any approved increases may have to be introduced gradually rather than “in one fell swoop.”

He warned that adjustments at one stage of the supply chain could create a knock-on effect and ultimately result in higher prices for consumers.

The Prime Minister said the goal is to find a fair arrangement that keeps service stations viable, protects consumers as far as possible and prevents further disruption to the country’s fuel supply.