Gasoline retailers could scrap a plan to stop accepting credit cards for fuel purchases if financial institutions agree to revise their processing fees.
The Jamaica Gasoline Retailers Association (JGRA), yesterday put on hold, its decision for members to cease accepting Visa and MasterCard credit cards.
The news came just hours before the scheduled implementation.
The suspension is until November 1.
JGRA President Derrick Thompson says if
Petroleum Company of Jamaica (Petcom) has entered into a dealership arrangement with the family of the late Lloyd ‘LG’ Brown to operate a service station at the intersection of Dunrobin and Constant Spring roads in St Andrew.
It’s part of the state-owned gasoline retailer’s strategy to procure a greater share of the overall petroleum retail market of which it now controls only 12 per cent. Petcom increases its service station chain to 29 with the deal.
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Acquisition of the former LG Service Station puts Petcom in a position to profit at one of the major intersections in St Andrew (Photo: Naphtali Junior) |
“Petcom is currently on a drive to expand our service station network and therefore we have been actively looking for strategic locations, particularly in the Corporate Area,” said the company’s general manager, Courtney Lawes.
“Our new location, Petcom Dunrobin, is not only a popular service station but it has the additional advantage of being situated in a high-traffic area,” said Lawes.
Government figures show that three major multinational oil companies
Debbie-Ann Wright, News Editor
The Gleaner/Power106 News Centre
The Energy Ministry is looking to overhaul the licensing and registration process for gas stations as it seeks to address competitiveness in the sector.
In recent weeks, gasoline retailers have been complaining of dwindling profits with some gas stations even being forced to close.
In a release yesterday, the energy ministry stated that the number of service stations and their proximity to each other was contributing to the low margins.
It said currently the service stations are licensed by the Resident Magistrate Courts and not by the Ministry.
Energy minister Paulwell said a one-stop-shop for licensing and registration of sector participants being worked on by the government will help to resolve this problem.
President of the Jamaica gasoline Retailers
TREVOR Heaven, president of the Jamaica Gasolene Retailers’ Association (JGRA), has said that service stations will be revamping their operations in a bid to save the sector from extinction.
“We are facing an unprecedented financial challenge,” he told Auto. “At this point, there are four stations in the Corporate Area that are already closed. These are the Total service stations in Harbour View, Half-Way-Tree, shortwood, and Red Hills.”
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HEAVEN… four stations in the Corporate Area are now closed |
“I intend to seek audience with the management of the French-owned Total Jamaica to see how we can best resolve the issue,” he said.
When contacted, Paula Duncan, HR manager for Total Jamaica, said she could not comment as the company’s managing director, Dr Michael Faulkner, was off the island.
However, the JGRA president said he has been advised that another two service stations in St Catherine and one in Manchester were on the verge of closure, but refused to name the brands.
Heaven, who met with retailers at the JGRA’s Constant Spring Road headquarters on Wednesday, attributed the current downturn in the gasolene retail business to high operational costs, shrinkage due to temperature changes, reduced gross income (low margins and reduced throughput) and increased bank and credit card charges.
The JGRA president said a raft of new measures would have to be implemented.
“We’ll be moving away from full service to self service. We’ll will have discussions with the unions to see how best we can transition,” he said. “While we [the dealers] develop other income streams, we can divert our employees into other areas of activities rather than dislocate them.”
Heaven said dealers would discontinue accepting Master Cards and Visa Cards at service stations as the bank charges are sometimes greater than the profits made.
“Only the NCB Key Card and debit cards will be accepted,” he said.
Heaven said he would also be seeking a meeting with Dr Peter Phillips, minister of finance, planning and the public service, as well as Anthony Hylton, minister of industry, investment and commerce, regarding an amendment to the Weights and Measurement Regulation.
The JGRA comprises 160 members and celebrated its 61st anniversary in April, 2012.
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TREVOR Heaven, president of the Jamaica Gasolene Retailers’ Association (JGRA), has said that service stations will be revamping their operations in a bid to save the sector from extinction.
“We are facing an unprecedented financial challenge,” he told Auto. “At this point, there are four stations in the Corporate Area that are already closed. These are the Total service stations in Harbour View, Half-Way-Tree, shortwood, and Red Hills.”
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HEAVEN… four stations in the Corporate Area are now closed |
“I intend to seek audience with the management of the French-owned Total Jamaica to see how we can best resolve the issue,” he said.
When contacted, Paula Duncan, HR manager for Total Jamaica, said she could not comment as the company’s managing director, Dr Michael Faulkner, was off the island.
However, the JGRA president said he has been advised that another two service stations in St Catherine and one in Manchester were on the verge of closure, but refused to name the brands.
Heaven, who met with retailers at the JGRA’s Constant Spring Road headquarters on Wednesday, attributed the current downturn in the gasolene retail business to high operational costs, shrinkage due to temperature changes, reduced gross income (low margins and reduced throughput) and increased bank and credit card charges.
The JGRA president said a raft of new measures would have to be implemented.
“We’ll be moving away from full service to self service. We’ll will have discussions with the unions to see how best we can transition,” he said. “While we [the dealers] develop other income streams, we can divert our employees into other areas of activities rather than dislocate them.”
Heaven said dealers would discontinue accepting Master Cards and Visa Cards at service stations as the bank charges are sometimes greater than the profits made.
“Only the NCB Key Card and debit cards will be accepted,” he said.
Heaven said he would also be seeking a meeting with Dr Peter Phillips, minister of finance, planning and the public service, as well as Anthony Hylton, minister of industry, investment and commerce, regarding an amendment to the Weights and Measurement Regulation.
The JGRA comprises 160 members and celebrated its 61st anniversary in April, 2012.
Read more:
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