Commercial banks could be asked to temporarily reduce their processing fees on card purchases of fuel from approximately 3.5 per cent to one per cent under a relief proposal being considered by the Government.
Prime Minister Gaston Browne is expected to hold discussions with the banks and the West Indies Oil Company Ltd. on the proposal, which is intended to ease pressure on service station operators during the current period of elevated fuel prices.
Gas station dealers have complained that the growing use of credit and debit cards is cutting into their already limited margins because processing charges are deducted from every card transaction.
Cabinet believes the temporary reduction could provide immediate relief to operators without transferring the full burden of their increased costs to consumers.
The proposal follows discussions between Browne, representatives of seven service stations and several fuel haulers after some operators temporarily stopped selling fuel on Tuesday.
The operators subsequently reopened following an agreement that their concerns would be reviewed.
The Government has also asked a special committee to examine whether the dealers’ margin should rise from 12 per cent to 15 per cent.
Cabinet noted that Antigua and Barbuda’s gasoline price was EC$14.50 per imperial gallon in July, compared with an Eastern Caribbean Currency Union average of EC$17.66. The domestic price increased on September 1 after the Government absorbed rising international petroleum costs for several months.
