Motorists upset over wide disparity in gas prices

With the price for 90 unleaded gas ranging from $139.90 per litre to $182.90 at a number of Corporate Area service stations surveyed by The Gleaner since the weekend, motorists have slammed the wide disparity in prices as ridiculous.

Deeply disgruntled, they said they felt cheated as they are left to dig deeper in their pockets for petroleum depending on where – and seemingly when – they make a purchase.

One motorist complained to The Gleaner that on the weekend, it had cost $182.90 for a litre at a Total gas station on Half-Way Tree Road and showed our news team a photo he took of the sign board with the pricing.

“I bought $1,000 worth of gas, and when I looked at the pump, it said I got 5.674 litres so I looked up at the price board and when I saw $182.90, I had to take a picture. That is robbery and we nah realise,” the motorist said. “It was a Sunday around 7:15 p.m. and all the other gas stations below that one were closed, so I had no choice but to buy the more expensive gas, but I was taken by surprise at the price.”

When our news team visited the location on Monday, the price was $159.20.

Efforts to speak to a representative for the reason behind the fluctuation failed.

Old Harbour, St Catherine, resident Michael Clemetson told The Gleaner that he has been noticing the disparity between prices in his community and in the Corporate Area.

He said the variation has caused him to drive around seeking out more affordable prices.

“I was on Hope Road today and a lot of the gas stations were like $160, and not very far from there, we were looking at $148 and $140.”

Marketing companies

The Jamaica Gasolene and Retailers Association (JGRA) has also expressed concern about the disparity in prices.

JGRA President Dianne Param told The Gleaner that it is not just a function of the retailers.

“Let’s use the Corporate Area, for example, what we find is that a marketing company will sell one retailer at one price and another retailer at another price,” she said.

Param said it has always been the view of the association that there should not be disparity because haulage is the only factor that the JGRA sees when gasolene goes out of town.

“Certainly, in the Corporate Area, haulage should be a flat rate, but what we find invariably is that the marketing companies sell at different prices, so the retailer put their margins on top of the price that they are sold by the marketing company,” Param said.

“This (the disparity) concerns us very much … ,” she told The Gleaner. “There are some marketing companies that are in the retail trade. Now when a marketing company competes against a retailer, you have two margins – you have the wholesale margin and the retail margin. The price that you can sell at as a marketing company in the retail trade is significantly lower than what a retailer [can sell at] so that is what is of concern to us because that creates a lot of the disparity.”

Gas prices per barrel of 87, 90 and diesel have been on increase since the start of the year.

According to data posted on the Petrojam website, as at January 28, 2021, the recommended prices were gasolene 87 – $117.1928, gasolene 90 – $120.0287 and diesel – $116.5903.

RUBiS Energy Jamaica Limited Retail Manager Wayne Wright said value-added variants may shape the price margin as petrol retailed by RUBiS are boosted with specially formulated additives, which improve fuel mileage and engine efficiency.

While a number of RUBiS stations operate locally, Wright said that they were mainly being run by private entrepreneurs.

When asked about the price mechanism and factors contributing to any disparity in prices, Wright reasoned that the reduced activity associated with the COVID-19 pandemic has caused several businesses to struggle to stay afloat, adding that gas stations were not exceptions.

andre.williams@gleanerjm.com