KINGSTON, Jamaica – The Jamaica Gasolene Retailers Association (JGRA) on Wednesday called on multinational oil marketing company Rubis to desist from issuing one-year franchise licenses to its service station dealer network.

According to the JGRA, these one-year contracts are not “bankable”, and therefore deny many dealers from accessing credit for working capital.

The JGRA also said in a press release that it is demanding an apology from Rubis, to their dealers, “for the callous, high-handed and disrespectful manner in which it has treated its dealers, who have for many years, carried on the business of petroleum retailing at these previously branded Shell sites”.

“We note with concern the unrelenting and dismissive behaviour of Rubis in refusing to resolve issues through dialogue, which is consistent with best business practices,” the JGRA said. “Only last year the company brought the country to the brink of disruption in the petroleum trade and have since not made enough effort to resolve the contentious issues between itself and its dealers.

“To aggravate the tension, Rubis has imposed strategies over the last year which has forced dealers into greater economic hardship,” the JGRA continued.

The association went further to accuse Rubis of “exploiting Jamaicans” due to the non-existence of “Fair Contract Laws”, the deficiencies in the “Fair Competition Act”, as well as a weak legislative framework to protect petroleum retailers and motorists from the excesses of oil marketing companies.

JGRA said there is no evidence that Rubis has the interests of the people at the centre of its business strategy in Jamaica. Instead, according to the association, there is evidence of scant regard for its dealers, the institutions of government and the general motoring public.

“We therefore ask that the Government of Jamaica, in the national interest, pay close attention to the operations of Rubis in Jamaica and take whatever actions necessary to mitigate the risks of disruption in the very sensitive petroleum trade,” the release continued. “The sacrifices of the Jamaican people to achieve the economic gains over the last few years should not be sacrificed on the altar of a multinational oil marketing company.”

The JGRA further urged the Government to “immediately implement a licensing regime for oil marketing companies, which will sync with the interests of the people and government of Jamaica, beneficial to all stakeholders, and which will result in stability and growth of the petroleum sector”.