The National Petroleum Marketing Aggregation Ltd of Trinidad and Tobago (NP) derives best of its profits beneath its accepted business archetypal plan, that is, the administration and rental operations of their gas stations network.
This includes accessibility aliment that are operated by the dealers (company-owned base and dealer-operated stations, “CODOs”, or operation of company-owned stations, “COCO”, i.e., company-owned and company-operated stations that are operated with their own staff.
The dealer-owned stations and dealer-operated stations, “DODO”, although beneath profitable than the added models, still derives profits from the franchisee fees and concessions adjustment for the accessibility stores, ammunition delivery, etc, to NP. All this will end with the privatisation of the account stations and aftereffect in the assured cease of NP in the abreast future.
NP’s business archetypal is not the administration of ammunition anymore—that’s a delusion by the Abbot of Accounts and the Government—it’s absolutely the authorization agreements with the petroleum dealers that is the acceptable allotment of NP’s business and what makes NP any profits at all in this bazaar today.
The administration of the account base business is 70 per cent of NP’s business, not the administration of fuel. There are 113 stations, of which 75 are aggregation owned. Dealers own the rest. The estimated amount of the account stations endemic by NP is about $1 billion, with about anniversary one costing $10 actor to $15 million.
So the Government, with this new abstraction to accession money, has proposed the sellout, the lifeline, the assisting allotment of NP, after appointment with the lath of directors, administration or stakeholders of NP. Further, affairs these admired backdrop now in these times would aftereffect in astronomic losses as acreage ethics are at its everyman in the aftermost year due to the Covid-19 communicable and the bread-and-butter downturn, both locally and worldwide.
This abstraction should be anxiously advised by the Government afore proceeding as this move proposed by the Abbot of Accounts of affairs off the stations will finer abort NP’s business and advance to the closing abeyance of NP and the article as we apperceive it, abrogation all the employees, abased companies and bags of bodies who depend on NP’s operations at risk, with no approaching and possibly on the breadline.
If NP shuts down, there will be above fallouts such as:
• There will be accordingly an access in the amount of ammunition with the able retail margin, which will accept a knock-on aftereffect on the amount of active for every aborigine in Trinidad and Tobago.
• There will be an access in the amount of ammunition to the motoring public, an access in travelling costs by auto or maxi-taxis and added costs of busline of appurtenances and services. Further, this knock-on aftereffect will affect aliment prices, grocery prices and commitment prices that may advance to added inflation.
• The privatisation of company-owned sites agency that it opens up the audible achievability of the accumulation of cartels on the retail ancillary of the business. Area the Petroleum Dealers Association can set a amount with the accumulation margins they appetite to make, this can account abundant college prices of ammunition at the pump.
This agency amount hikes in transportation, maxi-taxis and taxis, which can advance to a domino aftereffect area the prices of our basic aliment items and advantage increase. The barter and citizens of T&T would now be at the benevolence of retailers that can unavoidably advance to a bunch that puts the country’s busline needs at peril and at the benevolence of the cartel.
I would ask the Abbot of Accounts to accede these credibility to annul the bunch behaviour afore finalising the plan for privatisation of the gas stations:
1. The abbot allegation ensure that appropriate concessions be accustomed to absolute gas base owners for a ten-year costs of the acquirement of the stations so they do not abatement into the easily of amateur neophytes who do not accept the operation of the gas base business.
2. Ensure a amount cap at the pump so petroleum dealers cannot backpack up the amount and authority the motoring accessible at bribe because if cartels are accustomed to be formed, the repercussions would be staggering. It will be a domino aftereffect that hits the poor man’s abridged in busline costs, added aliment prices and added ammunition prices. The dealers cannot be accustomed to allegation whatever they appetite at the pump as the aegis of the customer allegation be paramount.
With this abstraction of privatisation comes the auctioning of admired assets and prime acreage of NP. It’s interesting, though, that the Abbot of Accounts alone now accustomed the retail allowance to be added afresh to acquiesce dealers to be hardly assisting at the pump, which agency the Government accepted that it was barren all forth and this plan proposed in the 2021 account is basically the abeyance of addition State action and sell-off of prime acreage and assets endemic by the State to accounts alternating costs of the Government, after appropriately attractive at the absolute archetypal and a way to advance acceptable assets for the future.
Is it astute to advertise off prime property in prime locations beyond the accompanying island at this time area the amount of acreage is at its everyman and we are adverse a pandemic, with aberrant accident of jobs and accident for our citizens?
That’s area NP’s account stations are located, at the best spots, at prime locations, beyond the country. Further, the acreage that belongs to NP is its bigger asset, account billions of dollars, and that is what is actuality targeted at this time.The privatisation of account stations and the affairs off of NP’s assets put the aggregation and its approaching in jeopardy, after cerebration of the advisers or families and businesses who depend on NP’s operation of gas stations throughout the country.
In conclusion, NP’s business advantage is absolutely acquired from franchisees’ agreements, which accommodate the rental and administration of account stations and the money acquired from that business area it receives fees from dealers to accomplish their stations. It’s the aggregate profits it receives from the operation of stations area it receives a allotment of the sales from Lotto machines, accessibility stores, ammunition commitment agreements and fast aliment establishments amid at these stations from the assorted locations beyond the country.
So what the Government has proposed is to finer advertise out the country’s prime assets and eventually account the abeyance of NP, abrogation it with no assets to accomplish money in the future, in this difficult activity market.
The bigger advantage for the citizens and the country, in my apprehensive view, is to put NP on the banal bazaar and acquiesce every aborigine the befalling and a adventitious to own allotment of NP, with shareholding in the company. It is allotment of our bequest and activity heritage, and a aggregation that has been assisting in the past, and can be afresh beneath the appropriate management.
Please, Abbot of Finance, do not acquiesce addition one of our State enterprises to be shut down, dislocating lives and assets and antibacterial addition allotment of our activity ancestry that belongs to the citizens of T&T.