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Stabroek News

FTC probing Esso's pricing policy
published: Friday | November 11, 2005


FROM LEFT: Trevor Heaven, president of the Jamaica Gasolene Retailers Association, Minister of Labour and Social Security, Horace Dalley, and Brian McFarlane, Esso Standard Oil, lead country manager sign a 10-point agreement for a resolution to the announced shutdown of the retail gasolene trade. At right is Alvin McIntosh, Permanent Secretary in the Ministry of Labour and Social Security. - PHOTO BY DAMION MITCHELL

BARBARA LEE, executive director of the Fair Trading Commission, said yesterday that the agency has commenced investigations into Esso's pricing mechanisms.

This has been the bone of contention between the marketing company and its dealers.

She, however, refused to estimate the length of time it would take for the results to be ready, although noting that the investigation process is long and tedious.

For the most part, it seemed that things were back to normal at service stations across the island yesterday.

This was much different from the chaotic scenes of Wednesday, when hundreds of motorists went on a mad rush for petrol.

LOCKDOWN AVERTED

The islandwide lockdown of service stations which the Jamaica Gasolene Retailers Association (JGRA) had called for was averted. This followed an agreement reached during a last minute meeting called by Labour Minister Horace Dalley, Wednesday night.

The Gleaner made checks with service stations in Spanish Town, Mandeville, Kingston, Portmore and St. Thomas and found that, in those areas, gas stations were open and had a ready supply of petrol.

By December 18, a Board of Enquiry is to arrive at recommendations to resolve the ongoing dispute between Esso Standard Oil and its retailers.

Mr. Dalley made the disclosure Wednesday night following the protracted conciliatory discussions between representatives from the marketing companies and the JGRA, supported by the National Workers Union.

Ten-point agreement between JGRA and Esso Standard Oil

Board of Inquiry to be appointed to examine Esso Standard Oil pricing policy.

Board will be appointed by November 18 with one nominee from Esso Standard Oil, JGRA and Labour Ministry.

Board chairperson will be appointed by Labour Minister Horace Dalley

Thirty days be allowed for conducting the inquiry.

The inquiry will commence upon the appointment of the board.

Terms of reference to be developed and agreed by the parties by November 14

Esso Standard Oil will suspend its present pricing strategy with effect from Nov. 12 and for the duration of the inquiry.

Immediate resumption of normality by members of the JGRA.

NWU ensures that tanker drivers immediately resume normality.

No victimisation by either side.

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