...Black market sales hurt legal retailers

THE black market for illegal gasolene is thriving in the Corporate Area and, according to licensed fuel retailers, eating away their profits.

According to the Jamaica Gasolene Retailers Association (JGRA), illegal gas stations are stealing the gasolene intended for the legal distributors. The JGRA also reported that its members are also losing customers to the illegal operators.

"We have seen between 30 and 40 per cent reduction in sales in the areas where these stations operate," JGRA President Leonard Green, told The Sunday Gleaner.

Mr. Green added that "gasolene is a high turnover product and the minute an illegal station is set up in the area you'll start seeing immediate reductions. One indicator is say for example, every day you'd sell an average of 300 litres, you start seeing a reduction to 200 litres," Mr. Green said.

But while JGRA members lament declining sales, they are also claiming that the black market operations have become dangerous.

"Our profits are one thing but the real concern is safety," Mr. Green said. "So far no one has been killed, but service stations have to follow so many safety guidelines which are non-existent in the illegal trade."

The Ministry of Mining and Energy has been taking steps to assist retailers. One measure is the establishment of a three-member gas inspection team, which will be monitoring legal and illegal gas stations in the island. They began inspections in April and have also visited three illegal gas stations where they issued letters to the operators, warning them to close down, Godfrey Perkins, permanent secretary in the Ministry of Mining and Energy said.

In January and April, there were two major fires in Greenwich Town and Hagley Park Road areas. No one was killed but, three firefighters were injured while four houses were destroyed and 45 people left homeless.

K.B.

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