The government has moved to reassure frustrated gas station operators that an increase in their profit margins is still on the table, even as Cabinet pushes for the establishment of three additional West Indies Oil Company (WIOC) service stations following another round of fuel disruptions across Antigua and Barbuda.
During its meeting on Wednesday, October 7, Cabinet acknowledged that service station dealers deserve an adjustment to their existing profit margins but maintained that the current instability in international petroleum prices makes an immediate increase difficult.
The position comes amid renewed industrial action by privately operated gas stations, several of which suspended operations on Wednesday as operators continued pressing for improved margins.
Cabinet described the closures as unfortunate, particularly given the essential nature of fuel distribution and the government’s ongoing discussions with dealers.
“The Government has already accepted the principle that the service station dealers deserve an increase in their margin. The issue is one of timing. At a time when international fuel prices are unstable and rising, the Government must carefully balance the legitimate interests of the dealers with its responsibility to protect consumers from additional increases at the pump,” Cabinet stated.
The government anticipates that petroleum prices could ease towards the end of the year, potentially creating an opportunity to implement the increase without placing further pressure on motorists.
Cabinet has instructed the Financial Secretary to expedite a meeting with representatives of the service station dealers to establish a clear path towards implementing the proposed adjustment before the end of 2026.
However, Wednesday’s discussions went beyond the immediate dispute.
Concerned about the concentration of service stations within the local market and the consequences of simultaneous closures, Cabinet advised WIOC to pursue the establishment of three additional stations at strategic locations across the country.
The proposed expansion is intended to strengthen fuel distribution, improve access and provide motorists with more alternatives when privately operated stations suspend operations.
Cabinet maintained that reliable access to petroleum products is critical to the country’s economy and daily activities.
The government is urging dealers to continue constructive dialogue while it works towards an arrangement that addresses their financial concerns without imposing an additional burden on consumers.
