Stations: Increased Profit Margin in August

11 years, 6 months ago - 15 May 2013, The Défi Media Group

After an hour of discussion on Monday, the Minister of Commerce and owners of service stations reached an agreement. An increase in the profit margin of the managers come into force in August. By then, several meetings will be held with stakeholders and there will be no strike.

The light at the end of the tunnel for the owners of service stations. After a meeting between the Minister of Commerce, Cader Sayed-Hossen, Monday and representatives of the Petrol Retailers Association (PRA), a decision was taken that the managers will get an increase in their profit margins as they demanded a hue and cry at the end of August. However, the quantum of the increase has not yet been determined.

A joint committee will be established to address this issue and other problems faced by owners of gas stations. They threatened to go on strike Monday, but backed off at the last minute on Sunday night, after the intervention of the Prime Minister.

"We agreed on several points, including that no peutà both negotiate and threaten to strike. We were able to discuss in a constructive way, "said Minister Cader Sayed-Hossen, who moderated a press conference after the meeting.

"Since 2008, we have sought unsuccessfully reviewing our profit margin. The meeting we had on Monday was positive. We managed to get a period ('deadline') for an increase in our profit margin, "said Banu Seegobin, spokesman of the PRA.

If Monday's meeting flattened the main sticking point (the profit margin of owners), several issues remain unresolved and will be discussed at future meetings with officials of the Ministry of Commerce.

Minister Cader Sayed-Hossen said that it is not only the profit margin that influences finance service stations. "There is a whole series of annexes effects: security, relations with the majors (oil companies) or banks. All this does not fall under the responsibility of the ministry. There is also the problem of the evaporation of gasoline which is a big loss for retailers, "said Banu Seegobin.

"The majority of stations are profitable. Only a handful of small retailers are not, "said the minister. "There is no question to address specific problems of these, although we support a reasonable solution to them".