Minister of Finance Colm Imbert yesterday knocked the T&T Petroleum Dealers’ Association (TTPDA) for a decision to take cash only at gas stations across the country, saying it had the potential to create a situation where all Government vehicles, including from the protective arms of the country, could have been grounded.
“I certainly think that it was a very unwise move on the part of the dealers because they knew exactly what they were doing and that this would affect the Government’s fleet, not just the public,” Imbert said during the yesterday’s weekly post-Cabinet briefing at the Office of the Prime Minister,St Clair.
On Tuesday, TTPDA president, Robin Narayansingh, via a release, had said that from today (gas stations would no longer be able to accept electronic card payments for fuel purchases due to the costs associated with this facility.
But in a bid to prevent a crisis situation, Imbert said yesterday he immediately gave instructions to National Petroleum (NP) to have all its 47 stations continue to take credit and debit cards.
“As Minister of Finance I will not allow that because the card is issued by the Ministry of Finance and there is an agreement with respect to the use of the cards,” Imbert said.
He, however, assured that all, Government and the public, were to benefit from the order.
“It would apply to everybody. It would not be discrimination to the general public and to have the Government fleet alone. It would be unworkable and a tremendous inconvenience,” he said.
The TTPDA had argued that it made the decision because while the cost of operating a gas station had gone up exponentially, the retail margin, which should facilitate fair operational costs, remained fixed.
In addressing that concern, Imbert said as a responsible Government they were looking at that issue but said it needed careful review.
He said Green Fund and the Business Levy, which the TTPDA complained about, was a “tax on the gross sales so it has nothing to do with whether you make a profit or not.
“So they are complaining that the increases in the Business Levy will cause them to go bankrupt but I am not sure I can accept an argument like that just on the face of it because why run a business that is continuously losing money?
“Why are you in business to lose money? It doesn't really make any sense but as a responsible Government we listened.
“I have heard what they have to say and we are going to take a very clinical look at the traditional or typical expenses of a gas station operator, look at their income, look at their expenditure and see whether there is any merit whatsoever in increasing the margin.
“But I certainly not going to have a knee jerk reaction to just jump up and increase the profit margin for gas stations,” Imbert added.
Noting that Unipet is continuing to take card payments, he said Government would also be looking at the terms of the licences to see if gas stations were allowed to scrap the Government's credit card system suddenly.
Questioned about concerns that gas stations taking in cash only could encourage money laundering, Imbert responded: “We had not looked at that but obviously it is something that I would want the ministry to look at.”
Imbert also said he found it strange the dealers would take a step where they would be required to have huge amounts of cash at their businesses.
“It would increase their own security requirements. I found it strange that they would actually do something like this but that’s their commercial decision,” he said.
Contacted last evening, Narayansingh said he would like a meeting with Imbert on the issue.
“What would he like us to do in the stage of rising costs that is associated with the acceptance of credit cards? What would be his suggestions?” he asked.
(See page A17)