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alexk
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With Petrotrin’s plan to import gasoline, diesel, jet fuel and other refined products for the local market, Petroleum Dealers Association president Robindranath Naraynsingh believes there will be another increase in fuel prices at the pumps.
With the impending closure of Petrotrin’s Refining and Marketing operation, the production of fuel at the Pointe-a-Pierre refinery will cease.
But at a media conference at the Pointe-a-Pierre Staff Club yesterday, Petrotrin board chairman Wilfred Espinet said the company intends to continue to supply local dealers with the products and engage in bunkering. Liquefied Petroleum Gas (LPG) will not be imported, he said.
Espinet could not, however, say where the products would be sourced. But he said they will find the products in the same way the company was able to source crude for refining. Petrotrin already imports crude from Canada and Russia.
When asked if the importation of fuel will increase the cost at fuel stations, he said: “Listen, the pump price is a policy decision. It has nothing to do with cost. The pump price that you pay has nothing to do with the cost of the fuel, so that is a political position for somebody to have to tangle with.”
In an interview afterwards, however, Naraynsingh said that the impact will be felt heavily given three increases in fuel prices in the past three years. If prices increase again, he said the impact on motorists’ finances could lead to a decrease in purchasing. This means that many operators could suffer heavy losses, he said.
“There is going to be a change in how we do business, how the effect drills down to the ordinary citizens of our country and it is going to drill deep. We as a people have to now hope that we’re going to climb out of this…We will go through a little turmoil, there will be some convulsion in the way we operate, some high people will dictate to us what to do,” Naraynsingh said.
As operators of fuel stations, he said they are governed by the Petroleum Act, which means that the cost of fuel at the pump is dictated by the Government. With profit margins already small, he noted many operators depend on a high turnover rate in order to reap gains, which may change under the future plan.
“A lot of gas station dealers are just living above substance levels. Expectations are going to be very strenuous and when the price of gas goes up, you collect a lot of money and pay a lot of interest in the bank on overdrafts. Small dealers will go out soon.”
He warned that these kinds of situations were responsible for dealers operating in clandestine ways, all with the purpose of keeping their families fed. He is hoping that the Government consults with the association before making any changes.