Consumers complain of gas price irregularity

By Terresa McCall
Reporter-SKNVibes.com

BASSETERRE, St. Kitts – CONSUMERS have expressed outrage at and concern with the apparent disparity between the price of gasoline at the gas pumps and that as stated by the Ministry of Finance.

 Since late 2006, the government implemented the “full-pass-through” system where consumers would bear the brunt or benefit of fluctuating gas prices on the international market. This implementation meant that gasoline sold in the Federation of St. Christopher and Nevis was no longer price-controlled.

As was approved by Cabinet, the Ministry of Finance would, whenever product is received by the respective gasoline wholesalers on the islands, calculate “the maximum retail prices at which Unleaded Gasoline can be sold at the respective company’s service stations”.

SKNVibes has learnt from the Ministry of Finance that whenever a listing is drafted, copies are sent to the various unleaded gasoline providers in the Federation after which copies are sent to the media.

Earlier this week, consumers expressed that they recognise a trend whereby, when a listing is issued by the Ministry of Finance reflecting an increase in gasoline prices, it is instantaneously reflected at the pumps. But whenever a listing that reflects a decrease in the price of unleaded gasoline is issued, the reflection of this at the pumps is not as immediate.  ~~Adz:Right~~ 

On Tuesday, SKNVibes contacted the West Side Service Station and Gillards Enterprises, which provide on retail, product from Shell (SOL) and Texaco respectively, and inquired about the price of unleaded gasoline at the pumps.

At about 12:08 p.m. on that day, the West Side Service Station was contacted and informed that a gallon of unleaded gasoline was being sold for $15.44 while at Gillard’s a gallon of that product was being sold at $15.39.

According to the price listing issued by the Ministry of Finance for that period, each gallon of gasoline was to have been retailed at a maximum of $15.33 at Shell Service stations and $13.89 at Texaco service stations.

SKNVibes contacted SOL’s Country Manager for St. Kitts-Nevis-Antigua Ivan Hanley who, concerning the matter, agreed that the price at the pump on the day of SKNVibes’ investigation was a couple of cents over the maximum retail price outlined by the Ministry of Finance. He explained, however, that there have been instances when the price at the pumps was to have been in excess of $20 per gallon but that was not passed down to the consumer.

“Around September 12, the refineries in Texas closed because of the passage of Hurricane Ike. At that point gas prices skyrocketed. Prices at the pump during that period were supposed to be at EC$21.34 if we were using the government’s full-pass-through system. However, that price was never passed on to the customer and we continued using the old price of $15.44, and as a result we incurred a loss of approximately EC$533,000. That was because we received cargo during the time when the prices were that high.”

This media house called Texaco’s bulk station with a view to getting an explanation for the price difference reflected at the pumps and was told to contact Granville Jacobs, the company’s Marketing Manager, but attempts to contact him were futile.

When contacted by this media house, Permanent Secretary of the Ministry of Consumer Affairs Rosalyn Hazelle explained that in the past the Ministry had received similar complaints from consumers and the relevant businesses were contacted and asked that the price at the pump be reflective of that which the Ministry of Finance issues.

Hazelle further explained that since then she has not been made aware of any further complaints, but advised that consumers who have similar concerns should report them to the Ministry of Consumers Affairs and the Ministry of Finance.

The PS also suggested that persons should begin making a habit of asking for and collecting receipts as “proof of purchase”. This, she said, would assist the Ministry of Consumer Affairs in rectifying any situation where consumers feel they have been wronged and it would eliminate any “your word against mine” situation.

The most recent release from the Ministry of Finance indicates that as of October 15, unleaded gasoline being sold at Texaco service stations should retail each gallon for no more than $13.89 and no more than $12.80 at Shell service stations. Investigations made by this media house yesterday (Oct. 17) revealed that prices at the pumps are reflective of the most recent price listing.