Pat Roxborough, Staff ReporterWESTERN BUREAU -
THE FAIR Trading Commission (FTC) is investigating claims by members of the Jamaica LPG Distributors Association that Shell W.I. Limited is trying to price them out of the cooking gas market by selling the fuel at preferential rates to distributors who sell only the Shell brand.
"We have met with the association and they have presented us with copies of bills to other LPG dealers which suggest some difference in pricing arrangements," said FTC Senior Economist, David Betty, last week, "but we have not been able to check the authenticity of these yet."
The aggrieved dealers, who sell two other brands of cooking gas, namely IGL and PETCOM, in addition to the Shell brand, gave the FTC what they say is documented proof of an unfair pricing practice by Shell, earlier this month.
However, Shell's LPG Marketing Manager, Mario Anderson, denied the association's claims.
"Pricing is really a marketing tool and we give support to all dealers in the same trade area," he said. "If we see that the other brands of cooking gas are being sold at rates below us, we will adjust our prices for all dealers in that area so that they can compete with the other brands."
In addition to the Shell brand, cooking gas is sold by two other marketing companies in Jamaica, namely Industrial Gases Limited (IGL) and PETCOM, a subsidiary of the Government-owned refinery, the Petroleum Corporation of Jamaica (PETROJAM).
"What is happening is that some dealers are filling Shell cylinders at other plants and we have no control over those prices," Mr. Anderson said.
The issue is one of several that the association discussed when it met last weekend to elect a new executive. Patrick Bailey, the lawyer who represents the association, told The Sunday Gleaner that he is checking if Shell had breached sections 17(e), 33, 34 and 35 of the Fair Competition Act.
"If it happens that the dealers have lost market share then a dealer may bring a civil suit for specific damages," he said.
Last weekend's meeting provided the opportunity for the association to update the dealers on its plans to tackle a number of Shell's policies, which it claims threatens their profit margins.
In the meantime, the Consumer Affairs Commission has lent its support to the association's crusade to remain viable in the cooking gas market dominated by Shell.
"The CAC endorses any attempt by the LPG Association to ensure that the product reaches the consumer at the lowest possible price, provided that such attempts do not contravene any legislation," said Maxine Ellis in a written response to the association earlier this month.
