Jerome Reynolds, Staff Reporter

President of the Jamaica Gasolene Retailers Association (JGRA), Leonard Green, says the increase on the tax on gasolene may result in negative fallout in the industry.

The government today increased the special consumption tax charged on E10 87, E10 80, diesel and ultra low sulphur diesel gasolene by $7per litre.

According to Green, the move has left a gloom over the gasolene retail industry.

He says the association and its members are worried about the future of their businesses.

The JGRA president says he believes the increases are unjustified.

Green says the association now wants to see issues in the gasolene trade which have affected the relationship between retailers and marketing companies addressed by the government.

He says the JGRA has secured a meeting with the Energy Minister next week.

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Meanwhile, the JGRA president says the association has taken steps to ensure that its members do not manipulate the new tax and overcharge customers.

Green also says the government will have to keep a close watch on the industry to guard against illegal players and to protect consumers from their illicit activities.

Noting that motorists are still recovering from the bad gas saga, he contends that the increased taxes on gasoline may provide an environment where the illicit trade in gasoline may flourish.

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Green was speaking on Real Business with Ralston Hyman on Power 106 FM this morning.