John Myers Jr., Staff Reporter
The new regulation was resulting in significant losses for gasolene retailers.
THE JAMAICA Gasolene Retailers Association (JGRA) has said it will take legal action against oil marketing companies, if they continue to refuse to conform to the new Weights and Measures Regulations.
Trevor Heaven, president of the JGRA, told The Gleaner that the gasolene retailers will seek redress through the courts if attempts to have the situation resolved through the Ministry of Commerce, Science and Technology, which has responsibility for the energy sector, and the Jamaica Bureau of Standards, which has been charged with the responsibility of guiding the implementation process, fail.
SIGNIFICANT LOSSES
Mr. Heaven said the continued refusal of the oil marketing companies to comply with the new regulation was resulting in significant losses for gasolene retailers. He explained that the new regulations became necessary as gasolene retailers continue to suffer losses as a result of a shrinkage in the volume of petrol, which occur between the time of loading at the refinery and distribution to retailers.
He explained that petrol is normally loaded at roughly 90 degrees Fahrenheit, however, by the time it gets to the retailers, the temperature is significantly reduced, which results in shrinkage. He pointed out that the international standard is 60 degrees Fahrenheit. The new regulation would result in gasolene retailers receiving more petrol.
The JGRA president noted that Petrojam has been compensating the oil marketing companies for the losses which occur due to the temperature change. However, he said the companies have refused to pass this on to the retailers who have been suffering the losses.
Roger Bryan, country chairman of Shell, which is one of the major oil maketing companies in Jamaica, said in a statement Monday that "we seek to compete fairly and ethically and within the framework of applicable competition laws, (but) a decision like this one will complicate the sales administration processes, leading to an increase in administrative cost that would not necessarily mean a lower pump price."
Furthermore, he said, "The temperature margin (the compensation given by Petrojam) has always been considered as an element of the complete margin basis used to cover oil companies cost structure." Texaco Caribbean did not comment when contacted, while the manager of Esso Standard Oil was said to be in a meeting.
ANGERED RETAILERS
"The retailers are angered by the fact that this particular legislation has been in train for nearly 30 years during which time the marketing companies have retained the rebate from Petrojam at the retailers' expense who continue to suffer the corresponding losses due to shrinkage," the JGRA said in the statement.
Mr. Heaven said the new Weights and Measures Regulation should have come into effect in November last year. However, the JGRA's statement said "Minister Phillip Paulwell, in a meeting with the concerned parties
on April 25, stated that the provisions under the act would (have been) implemented on May 1."
