Petroleum dealers cry foul - Clashes with marketing companies could spill over and impact motorists
Published:Friday | February 23, 2018 | 12:00 AMErica Virtue
The bad blood between petroleum marketing companies and the dealers has again bubbled to the surface with members of the Jamaica Gasolene Retailers Association (JGRA) alleging that a climate of hostility and malice is marring the relationship and could spell trouble for motorists.
Head of the JGRA, Phillip Chong, told The Sunday Gleaner that some of its members have complained of the approach of the marketing companies, ,and this is striking a match to an already explosive situation.
"We have always had issue with them, but it has reached a stage where we have seen a marketing company launch an attack on a dealership," said Chong, as he pointed to a recent clash which involved a supply contract.
"In this instance, the matter involves their supply contract," added Chong.
He said on expiration of the contract the dealers started to walk away from the marketing company but it owned the equipment being used by the dealer.
"The expired contract speaks to how difference should be, or could be, resolved.
"Technically they should go to arbitration, and failing in arbitration they should take it to the court to resolve the issue. Instead, the marketing company went on the site to reclaim their equipment. No due process," charged Chong.
Unprecedented situation
The JGRA head further charged that in at least one instance, the marketing company was invited by the dealer to retrieve the dispensers or the pumps by virtue of a letter.
But the marketing company decided that it would also take the canopy, the covering over the pump, and then it sealed the underground tank to prevent any other marketing company from supplying gas to the dealer.
He argued that while tanks belong to the marketing company, in this specific case the premises belonged to the dealer.
"This seizure was an unprecedented situation and they went inside without a court action and turned the situation completely hostile. In this case, the company did this although it was invited to remove things. In another instance, the marketing company went in without invitation and seized and sealed," charged Chong.
He noted that one of those cases is now before the court.
"The JGRA is saying that the marketing companies should follow due process and don't encourage discord with this type of behaviour," said Chong, as he argued that petroleum dealers are free to go with whichever marketing company they chose as long as there is no supply contract in place.
Chong argued that dealers can indicate, before the end of a contract, that they do not wish to continue the relationship with any marketing company, but the marketing companies have refused to separate from dealers amicably.
"Dealers now feel they are not free to walk away when a contract ends. And when they seal the tanks, they are preventing the owner of the property from earning, as well as operating a business.
"If a new premises is sought, you have to get permission from an agency such as the National Environment and Planning Agency, and that takes time," said Chong said.
He charged that the "looseness" of the petroleum industry allows marketing companies to give onerous contracts to dealers, and this is done with a "take it or leave it attitude".