Paulwell
Howard Walker, Staff Reporter
AFTER YEARS of fighting, the Gasolene Retailers' Association (GRA) and the Petroleum Marketing Companies have finally reached an agreement over the pricing of pertroleum products and goodwill.
Phillip Paulwell, Minister of Commerce, Science and Technology, says he has negotiated successfully an agreement between the two over procedures governing their relationship.
The Gasolene Retailers' and the Petroleum Marketing Companies were at loggerheads over the termination of some gas dealers' contracts by some of the marketing companies. The GRA thought they were unfairly dismissed and took the case to the Fair Trading Commission (FTC) only to find out that the FTC regulations did not address the problem.
Then there was the problem of pricing which the retailers said 'was forced on them', several attempts to address the issue through protest and demonstration by the GRA never materialised.
CONCERNS HAMMERED OUT
But, after 16 months of talk, the two organisations finally agreed on some issues and the Fair Trading Commission (FTC) will be responsible for developing and administering a code of conduct which was hammered out to address the concerns.
"The discussions were guided by the principle of free enterprise within a framework which recognises the right of smaller players to protection against dominance within the parameters of law," said Paulwell.
Lloyd Brown, president of the Gasolene Retailers' Association, though thankful for the intervention of the minister, thinks the time that the FTC has to process the agreement is not long enough.
"Our members feel that six months is a long time because we are still suffering under the same pricing regime," said Brown.
"We are asking the minister to expedite the process. We have had agreements with the Marketing Companies before and they never fulfil them," he added.
Meanwhile, Bunny Hobbin of United Petroleum, a represenative of the Petroleum Marketing Companies, says he would have to look over the agreement with his colleagues before commenting on the issue.
Some important elements ironed out in the new accord include a reiteration of the principle of abiding by non-discriminatory practices, the entitlement of all parties to fair returns on their investments, payment for the early termination of contracts and guarantees of contracts for at least three years, of which the first year would be a probationary period.
LIMITED LIABILITY
The gasolene retailers would also now be able to operate as a limited liability company once their principal manager was identified.
Paulwell expressed his appreciation to the marketing companies for their contribution to the accord reached, and also to the Jamaica Gasolene Retailers' Association, which represents a substantial number of retail gasolene entities.
