PM Browne Renews Calls for Banks to Reduce Credit Card Merchant Fees Amid Gas Station Dispute

Prime Minister Gaston Browne has turned his attention to the banking sector, publicly calling on financial institutions to reduce credit card merchant fees charged to gas station operators as the ongoing dispute over fuel profit margins continues to affect motorists across Antigua and Barbuda.

In a statement posted to his official Facebook page on Thursday morning, Browne appealed directly to commercial banks to ease the financial burden on fuel retailers.

“On behalf of the gas station dealers, I publicly appeal once again, to the banks to reduce their credit card merchant fees,” the Prime Minister stated.

The appeal comes against the backdrop of renewed industrial action by privately operated gas stations, whose operators have been demanding an increase in the margins they receive on fuel sales.

The latest action, the second in recent weeks, resulted in several stations suspending operations, leaving motorists facing lengthy queues at West Indies Oil Company (WIOC) outlets as they scrambled to purchase gasoline.

Browne's intervention also brings renewed attention to the wider debate surrounding merchant fees, which businesses pay financial institutions to process customers' credit card transactions.

These charges can affect operating costs, particularly for businesses handling large volumes of electronic payments, including gas stations.

The Prime Minister's latest statement suggests that reducing banking charges is among the measures he wants considered as fuel retailers continue raising concerns about their profitability.

However, his Facebook post did not specify the current merchant fee rates, the level of reduction being sought or whether any financial institution has agreed to review its charges.

The call is not a new proposal. In September, the Government indicated that it would seek a temporary reduction in card-processing fees from approximately 3.5 per cent to one per cent to provide relief to service station operators without passing additional costs directly to motorists.

At least one service station, Dee's Service Station and Food Mart, previously announced that it would stop accepting credit and debit cards for fuel purchases, citing the impact of processing fees on its earnings.

Fuel dealers have since argued that the situation has become increasingly difficult, claiming that their earnings per gallon remain fixed while banking charges rise alongside pump prices.

Browne's renewed appeal now places commercial banks back at the centre of discussions over possible relief for fuel retailers, even as the wider dispute over dealer margins remains unresolved.

It remains unclear whether the banks will respond favourably to the Prime Minister's latest request or whether a reduction in merchant fees could help bring the ongoing dispute to an end.