Gas stations across the country face closure.

[Duane 3NE 2NR]

Many of Trinidad and Tobago’s 170 gas stations will possibly close soon, due to lack of profitability and other issues.

This is the dire prediction coming from Former Chairman of the National Petroleum Company Ltd, Neil Gosine.



In a release sent out on Saturday, Gosine noted that the authorities have been properly informed for several months now about the critical issues facing the gas station industry.

He lamented however, that nothing has been done.

Gosine is calling for the Government, and especially the Minister of Energy, to be held directly responsible for the crisis in which gas station operators now find themselves.

He noted that there have been appeals from the Petroleum Dealers’ Association for a practical profit margin in order to stave off the unavoidable closure of gas stations and retrenchment of more than 2,000 workers, but these appeals have fallen on deaf ears.

He highlighted that each time the retail prices of fuels are increased, gross profits for operators decline, since there is no revision of profit margins.

This leads to a situation he said, in which after payment of salaries and wages to pump attendants, maintenance and other staff, in addition to electricity and other essential costs, petroleum dealers are left without a living wage.

Gosine is calling on Minister Olivierre and the Minister of Finance to intervene now, to assist and save the gas station operators from ruin.

http://news.power102fm.com/gas-stations ... sure-38186

[bluesclues]

What would happen if they let the gas stations keep a small percentage of the vat on sales. So they will basically be paying back at a reduced vat rate, but selling at the standard rate.

[nervewrecker]

Or is it all the gas stations that were handed out to friends and family under the last regime getting wood now?

Apart from that is not only gas these stations sell. They clocking in the same profits as most small groceries if not more. How come we not hearing most groceries and shop owners fussing?

[neexis]

This really is a silly situation. That 3x increase in GFL and business levy has really put a squeeze on them.

Approx 17c profit per litre of super means that they haven't changed that commission since the 90's.
And depending on their credit card commission, if you paying with CC, some may not make any profit at all on fuel.

Can't blame them for shutting down.

[neexis]

Or is it all the gas stations that were handed out to friends and family under the last regime getting wood now?

Apart from that is not only gas these stations sell. They clocking in the same profits as most small groceries if not more. How come we not hearing most groceries and shop owners fussing?

Grocery owners allowed to set prices for all their products.

80% of revenue in a gas station is from the sale of fuel.... because most people go to a gas station for gas.
How much ice cream and sea jink you really feel selling on a daily basis?

[nervewrecker]

Prices in the gas stations usually higher than that in the grocery.

Should spend a 10 minutes in a gas station car park and see how much drinks (alcoholic and none alcoholic), snacks and cigarettes sell.

[ruffrider27]

Prices in the gas stations usually higher than that in the grocery.

Should spend a 10 minutes in a gas station car park and see how much drinks (alcoholic and none alcoholic), snacks and cigarettes sell.

next solution KFC in most NP stations , trini's love fry chicken .

[silversurfer TnT]

What would happen if they let the gas stations keep a small percentage of the vat on sales. So they will basically be paying back at a reduced vat rate, but selling at the standard rate.

great idea instead of fighting down come up with solutions this problems is affecting all of us not just pp or pnm supporters... as far I could remember the majority of the gas stations has been around long before most of us....

[bluesclues]

Prices in the gas stations usually higher than that in the grocery.

Should spend a 10 minutes in a gas station car park and see how much drinks (alcoholic and none alcoholic), snacks and cigarettes sell.

Precisely, they need to lower the profit margin on quickshoppe items to increase turnover. Im at a quickshoppe every day almost and i buy nothing in it. In fact i go, buy gas, and then drive to the grocery or corner shop. Only thing i remember was competitively priced in quickshoppe was cigarettes.

[bluesclues]

What would happen if they let the gas stations keep a small percentage of the vat on sales. So they will basically be paying back at a reduced vat rate, but selling at the standard rate.

great idea instead of fighting down come up with solutions this problems is affecting all of us not just pp or pnm supporters... as far I could remember the majority of the gas stations has been around long before most of us....

Well either way pnm government probably wont explore this option. Because the reason i suggest it is so that the government will have less of our tax money to mismanage and so gas prices for us, a fkin producer will stay at and below market rates while they mismanage our remaining tax monies. But at least we wont have a shortage of gas stations.

But if the objective is to make gas more expensive then they will probably allow the stations to set their own markup or some thing so. So the rest of the world will be paying $3 and we, who produce and sell to the world, will be paying $5.

If this happens, there should no longer be any doubt that pnm objective is to shaft the public and probably seeking to pocket a half billion usd between them before the end of this term in power.

[sk1111]

In the US, stations make cents per gallon. It's nothing. like others have said it's the convenience store that the money is made on. Check places like Medford, peakes etc. the money is made inside not on fuel.

[pete]

To survive they seem to need to have a quick shop and fast food restaurant renting. All the small older gas stations with no room to include additional shops etc who really suffering.

[fokhan_96]

Watch how nothing would come out of this, and very few or no gas stations would close. In a couple months business as usual.

[drchaos]

"He highlighted that each time the retail prices of fuels are increased, gross profits for operators decline, since there is no revision of profit margins."

I don't understand ... Why do gross profits decline? If the cut the gas station gets for every liter sold is the same before and after the increases in gas prices. Should the gross profits not stay the same???
Is he blowing smoke up our asses cause of greedy gas station owners or does he have a point?

[nervewrecker]

Watch how nothing would come out of this, and very few or no gas stations would close. In a couple months business as usual.

Or they just going pay the workers less.

[ruffrider27]

Watch how nothing would come out of this, and very few or no gas stations would close. In a couple months business as usual.

Or they just going pay the workers less.

Or more self serve , how hard it is to pump yuh own gas now

[adnj]

In the US, stations make cents per gallon. It's nothing. like others have said it's the convenience store that the money is made on. Check places like Medford, peakes etc. the money is made inside not on fuel.

The same is true in Canada and Western Europe. The profit is in the items that are sold at the front counter, not on the fuel itself.

[X_Factor]

^ less liters are sold per $100.00 at that station since thats about the most common value of gas someone would put
so when it was 2.75 their commission would be 36x.17
then at 3.00 = 33 x.17
then 3.58 = 28.* x.17

Even though you are not using less gas, you may end up going at another station, thus reducing profit from the first one and with those mega stations like brentwood and ramco at massy, it will kill the smaller stations with 2 and 4 pumps where you have to wait much longer

[pete]

Business levy and green fund were increased and those are paid on revenue. Also they have raised the price and revenue has increased but profit has remained the same so with the increased taxes now they're making much less on fuel.

[maj. tom]

Yeah the 1900s small business model not working again. Get with the times. Superpharm doing it and forcing a lot of small pharmacies to close for lack of profit. Massy (HiLo) doing it and lots of small corner groceries now closed down. Pricesmart doing it and a lot of the small electronic stores gone. Courts doing it, you even getting glasses there now. People prefer to go to the Unipet and NP brand name big locations that welcomes the customer and promises good service and more inside.

Either whine and complain, or get with the times and find a way in the current economic setting. People in the urban 21st century prefer the Walmart business model and want to get it all in one convenient location at cheaper prices and better service over wasting time and more money over the same product in ten different places.

[baigan]

Yeah the 1900s small business model not working again. Get with the times. Superpharm doing it and forcing a lot of small pharmacies to close for lack of profit. Massy (HiLo) doing it and lots of small corner groceries now closed down. Pricesmart doing it and a lot of the small electronic stores gone. Courts doing it, you even getting glasses there now. People prefer to go to the Unipet and NP brand name big locations that welcomes the customer and promises good service and more inside.

Either whine and complain, or get with the times and find a way in the current economic setting. People in the urban 21st century prefer the Walmart business model and want to get it all in one convenient location at cheaper prices and better service over wasting time and more money over the same product in ten different places.

Very true

[X_Factor]

Yeah the 1900s small business model not working again. Get with the times. Superpharm doing it and forcing a lot of small pharmacies to close for lack of profit. Massy (HiLo) doing it and lots of small corner groceries now closed down. Pricesmart doing it and a lot of the small electronic stores gone. Courts doing it, you even getting glasses there now. People prefer to go to the Unipet and NP brand name big locations that welcomes the customer and promises good service and more inside.

Either whine and complain, or get with the times and find a way in the current economic setting. People in the urban 21st century prefer the Walmart business model and want to get it all in one convenient location at cheaper prices and better service over wasting time and more money over the same product in ten different places.

Gas industry is different, you get a fixed commission and a simple loss of $2.00 per 100$ spent can pay an attendant his/her salary for a shift on a pump
all those other companies can set what price they want therefore making much more profit

What if the smaller gas stations dont have the land/capital to invest in making a large all in one?

Paying for gas with a CC, is almost giving the gas away as well unless the government absorbs some of the cc charges?
at 3% on a $1.00 and 3.5 per liter = 10.5cents less 17c commission = out of business

[fokhan_96]

^^ such is life. It's not only gas stations where profits are less. Most of us with small businesses can agree that 2016 so far has been a slow year to date. And we all know of people who had to close down their businesses for some reason or another. But these other businesses didn't cry to the government, they got up where they fell and started something again.

[neexis]

"He highlighted that each time the retail prices of fuels are increased, gross profits for operators decline, since there is no revision of profit margins."

I don't understand ... Why do gross profits decline? If the cut the gas station gets for every liter sold is the same before and after the increases in gas prices. Should the gross profits not stay the same???
Is he blowing smoke up our asses cause of greedy gas station owners or does he have a point?

Because they were making 17c per liter when it was $2.50 per liter. Then it was still 17c when it was $2.70, and then $3.11.

Also when the VAT decreased from 15% to 12.5%, the cost price of fuel to operators didn't change, which meant the cost of fuel went up to the operators only; consumer price at the pump remained the same.

Same volume of fuel being sold at a higher price means more revenue to be taxed.

[neexis]

^^ such is life. It's not only gas stations where profits are less. Most of us with small businesses can agree that 2016 so far has been a slow year to date. And we all know of people who had to close down their businesses for some reason or another. But these other businesses didn't cry to the government, they got up where they fell and started something again.

Did those other businesses have their product prices set by the government?

[fokhan_96]

No one is forcing anyone to own a Gas Station. It's your choice. If you choose to have a business where your profit margin are low, it's your choice. This is the world we live in. And no, it's not fair to them, but it's also not fair to all the retrench workers who are unemployed now.

[cherrypopper]

Money laundering will pick up the slack...ooops

[adnj]

^ less liters are sold per $100.00 at that station since thats about the most common value of gas someone would put
so when it was 2.75 their commission would be 36x.17
then at 3.00 = 33 x.17
then 3.58 = 28.* x.17

Even though you are not using less gas, you may end up going at another station, thus reducing profit from the first one and with those mega stations like brentwood and ramco at massy, it will kill the smaller stations with 2 and 4 pumps where you have to wait much longer

This is the Walmart argument. What you are saying is that the smaller, less competitive store front is losing money to the newer, larger, more appealing store front and that prices should increase as a consequence.

Miles driven and the number of vehicles in T&T continues to rise. Fuel consumption is about three times what it was ten years ago.

http://www.indexmundi.com/energy/?count ... onsumption

[X_Factor]

We talking about a fixed commission based profit via the government that every single gas station owner gets
and not a "price" that someone chooses to put.....dont compare a store with gas sales
the store owner can choose its mark up vs the other cannot
When minimum wage, taxes and general cost of sales goes up, the store owner can adjust its prices to follow thus maintaining about the same amt of profit
A gas station whose income depends on mainly gas sales ( older gas stations) cannot adjust its price to suit those things therefore having a drastic drop in net profit

Agreed that fuel consumption is way more than what it was, but imagine you being paid based on what was paid 25yrs ago in today's market
Include all the increases in taxes, NIS etc, It might actually be profitable to not work
Recently the gas station by valpark was closed for that same reason, it was not profitable
I saw them open up again so maybe new management trying something different

[bluesclues]

"He highlighted that each time the retail prices of fuels are increased, gross profits for operators decline, since there is no revision of profit margins."

I don't understand ... Why do gross profits decline? If the cut the gas station gets for every liter sold is the same before and after the increases in gas prices. Should the gross profits not stay the same???
Is he blowing smoke up our asses cause of greedy gas station owners or does he have a point?

Because they were making 17c per liter when it was $2.50 per liter. Then it was still 17c when it was $2.70, and then $3.11.

Also when the VAT decreased from 15% to 12.5%, the cost price of fuel to operators didn't change, which meant the cost of fuel went up to the operators only; consumer price at the pump remained the same.

Same volume of fuel being sold at a higher price means more revenue to be taxed.

Which is why i suggest letting them take a small cut of the vat. But besides that.. these stations ceos need to go do a business management course because they running the gas station apparently with little to no real business sense. Gimme a gas station to run i buy a beamer in the first year with part of my salary.