On the heels of my blog this morning mentioning the gas riots, it's madness on the streets. In just about an hour, all our gas stations are going to shut down, possibly until at least Friday. I mean, I can understand the cause, and I understand that they cannot operate when their margin has been cut from 8.2% to 3%, but shutting down all the stations? There are police directing traffic, stations out of gas, window wipers harassing the motorists because traffic is at a standstill and drivers abandoning their vehicles to walk. Pissing off the general public might not help their cause because as the JGRA president rightly said on Cover Story on Kool 97FM, it's us motorists and the gasoline retailers that have to live, not the bigger heads up in Miami who they're trying to force into action.
Read more about the situation online:
Esso dealers to discuss next move today
http://www.jamaicaobserver.com/news/html/20051108T220000-500_92134_OBS_ESSO_DEALERS_TO_DISCUSS_NEXT_MOVE_TODAY.asp
JGRA considering shutdown of other service stations
http://www.rjr94fm.com/news/story.php?category=2&story=21218
Esso stand-off set to escalate - Gas retailers hang tough in pricing row
http://www.jamaica-gleaner.com/gleaner/20051109/lead/lead5.html
Postscript: Well, they called off the two-day strike. Don't I feel glad that I came straight home and didn't bother joining any long line? And my half a tank is still going strong. Here are some more articles...
Normality returns to petroleum sector
http://www.jamaicaobserver.com/news/html/20051110T220000-0500_92265_OBS_NORMALITY_RETURNS_TO_PETROLEUM_SECTOR.asp
FTC probing Esso's pricing policy
http://www.jamaica-gleaner.com/gleaner/20051111/lead/lead4.html
Heaven (JGRA president) appologises for consumer gas scare
http://www.jamaica-gleaner.com/gleaner/20051111/lead/lead5.html
1 comment:
Well i had to make a comment on this topic because it strikes so close to home. The sly manuvering by the gasoline wholesalers (Esso/Exxon, Shell, Texaco) have tried for years to find ways to squeeze the business of owning gas sations.... and i am a total 1000% support of the JGRA taking this extreme action to get the attention of the Esso executive staff in Miami as usual it takes a strike or a go-slow to get any persons attention in Jamaica these days but i agree that it must be done.
Please note that the retailers that are involved in this strike are running a business.. RUNNING A BUSINESS I SAY AGAIN. To even get the consideration to operate a gas station is a very cost intensive process which results in an opinion driven decission from the 'men with no faces aka. the execs' and all you have invested to apply can be lost with as simple as 'No.' Not to mention the fact that there contracts are under constant review and can be retracted at renewal time, contracts are anywhere from as short at 1year (how can anybody run a business effectivly in only one year we will never know) to 5years......
With that being said HOW CAN ANYONE EXPECT TO SURVIVE ON ONLY 3% profit? So lets say for that 1000.00 of gas that you buy all the dealer gets is 30.00.......... with that 30.00 the dealer must meet his obligations of his lease/or loan, utilities, payroll, services needed and all else that comes into running a labour intensive business. For that 30.00 you and your families are a constant target and live in contstant fear of being robbed or shot in your bedroom or driveway.
Please know also that for the petrol product YOU MUST PAY UPFRONT so all the people that thing you are 'trusted' gas and then you pay back and take a profit you are very very wrong. I will continue to support the JGRA and even if it cripples the entire country but as any person who operates a business you must admit that a 3% profit is an insult.
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