Antigua and Barbuda fuel dealers warn of shrinking margins

Service station operators in Antigua and Barbuda have issued an open letter to Prime Minister Gaston Browne, warning that shrinking profit margins threaten their ability to remain in business. The dealers reported that their gross margin has fallen from 8% in March to 6.38% as fuel prices have risen, given that they receive a fixed rate of $1.08 per gallon for gasoline and 95 cents per gallon for diesel.

The operators are calling for the immediate establishment of a promised review committee and the implementation of a 10% floating margin, which they claim was agreed upon by the Cabinet in 2003. They expressed frustration over a lack of communication from the government following meetings held earlier this year.

In response, Prime Minister Browne stated that the government has not reneged on its commitments and expects to assist dealers with a margin increase by December following the completion of negotiations. Browne characterized the operators' recent actions as “unjustifiable” and noted that gas stations currently open would remain open late to serve customers.