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Service Stations: Profit Margins Increase Late August

9 Août 2013 - Défi Media Group

Service Stations: Profit Margins Increase Late August

The owners of service stations will receive an increase in their profit margin from the end of this month. Several meetings took place between the various parties involved to reach an agreement on the increase and also on other measures.

After more than three months of negotiations, the owners of service stations are going to get an increase in their profit margin. A decision to this effect is, in fact, expected by the end of this month. The quantum of the increase, however, remains to be determined.

Since last May, several meetings took place between, on the one hand, the owners concerned, and on the other, several stakeholders including representatives from the police, insurance, Mauritius Bankers Association or services metrology. The Ministry of Industry, in May, decided to oversee these regular meetings to end the threat of strike of these stations.

"For the moment, things are going in the right direction and we are quite satisfied," says Banu Seegobin of the Petrol Retailers Association. In addition to the single issue of the increase in profit margin, other topics related to the daily operation and the "difficulties" of the owners of gas stations have also been mentioned.

One of these issues relates to the banks. These financial institutions provide loans to service stations and are also responsible for the issuance of credit cards used by some motorists to buy their fuel, and on which a fee is charged. This aspect was also discussed. "We had a good discussion on the subject. This could lead to a positive note, "says Banu Seegobin. Commercial banks may also review the commission down. The issue of the fight against insecurity was raised with the police force, we learn. "We will see what the impact of all measures to be decided," also said the spokesman of the PRA.

The decision to open a dialogue between service stations and stakeholders followed the strike threat wielded by the owners of these stations in May. The latter demanded an increase in their profit margin of around 6%. The last increase their margin they had been granted in 2008. 

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