THE FAIR Trading Commission (FTC) has determined that it is unnecessary to prevent marketing companies in the gasolene industry from operating petrol stations in competition with other retail outlets.
In the FTC's report on gasolene supply in Jamaica the commission found that, of the nine local marketing companies, only Shell, Total and Unipet were found to operate a significant proportion of their respective branded outlets at the retail level.
"The number of company-operated outlets is too small. However, for these companies to have a strong negative influence at the retail or the wholesale level of the market. Further, no below-cost pricing was found at these retail outlets," the commission said.
Those findings effectively dismissed the Jamaica Gasolene Retailers Association's long-standing claim that it was necessary that marketing companies be barred from operating retail outlets.
In the report, the JGRA argued that marketing companies act as both wholesalersand retailers, thereby competing unfairly with other retailers under their own brand.
