Fuel station owners not pleased with GUYOIL management policies

Feb 20, 2011 News

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Some fuel station operators are not happy with the arrangement with regards to their contract with the Guyana Oil Company (GUYOIL), especially since they are opining that the new head of the entity appears to be micromanaging, affecting the smooth running of the government-owned agency.
With concerns ranging from unreliable supplies of fuel to threats to close down operations, the petrol station owners are now faced with acute economic hardships and are appealing for the speedy resolution to their concerns.
The fuel dealers who spoke with this newspaper during last week indicated that they are contracted to the Guyana Oil Company, for the supply of fuel. Their contact ties them to a price structure outlined by the company and it precludes them from purchasing fuel from any other company, even if GUYOIL cannot supply them on time.
Of major concern is the fact that almost every transaction between petrol dealers and the company has to go through the managing director, Badri Persaud, since the company has been without a marketing manager for the past two years.
“Everything has to go through Mr. Persaud and if he says you can’t have fuel then that’s it,” one fuel station owner told this newspaper.
This is despite several meetings with the company to arrive at an amicable solution.
The dealers all observed that their business is customer-oriented and the way that they are treated by the company leaves much to be desired.
For example, they pointed out that on many occasions GUYOIL is delinquent in the timely delivery of fuel, and they are always given a flimsy excuse about the boat being late.
“For four years now we hearing that they will have their own boat to bring in fuel,” one of the dealers told Kaieteur News.
This, the dealer stressed, resulted in them losing business after their tanks become empty, a situation that has existed for the past two to three years.
“When customers come and you have to tell them all the time that you’re out of fuel, they will eventually stop coming to your gas station and this could spell doom for our multi-million-dollar investments. You’re lucky if you get the full amount requested because most times you have to beg,” another dealer stated, not wishing to be identified for fear of victimization.

“Imagine people come all the way from Berbice and Linden and you have to tell them that you do not have diesel,” another dealer remarked.
They claimed that as recent as last week most of their kerosene and diesel tanks have been empty.
In some cases, those who are fortunate were given a limited supply.
Yet whenever this situation occurs, the GUYOIL-owned stations are fully supplied.
“GUYOIL is selling the cheapest and obviously the sales will go up. The bulk company will not have a problem, but we the retailers will. Whenever GUYOIL stocks are depleted we are the ones who suffer,” one fuel station owner said.
They said that on one occasion in January, retailers had to wait for more than eight days to replenish their stock.
To make matters worse, the dealers cannot buy fuel from any other company to maintain their customers. If they even do so unknowingly to GUYOIL, they will have to sell at a price stipulated by the state-owned oil company, even if it means operating at a significant loss.
Presently, operators of GUYOIL-contracted fuel stations earn a mere $6.00 per liter on diesel and $7.00 on gasoline. To make a profit, given their overhead expenses, they will have to sell a significant amount of gas.
And given the irregular supply from GUYOIL, there is no way that some of them will survive for long, in the competitive fuel market.
“You can’t mek them come and see you selling other lubricants although Castrol, which is their product, is more expensive,” one of the dealers stated.
In a previous case highlighted by this newspaper, a fuel station proprietor had his pump seized by GUYOIL personnel who were accompanied by armed guards, when he tried to reduce the price of his fuel, to remain competitive.
“When GUYOIL doesn’t have fuel to supply us, the Managing Director tells us to close down. How could we operate like this? Whether we sell fuel or not, we still have our overhead expenses to cover?” one of the fuel dealers stated.
Each of the dealers that this newspaper spoke with has indicated that they were forced to reduce their staff, in light of the situation.
Presently, the Guyana Oil Company reportedly does not have diesel to supply retailers.
This newspaper has been trying repeatedly to contact the GUYOIL Managing Director, Badri Persaud, since Friday, and on every occasion he was in a meeting.
It is hoped that a response will soon be forthcoming.

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