Service charge

“Collective decision” to increase the price of LPG through “service charges”… | Local News

A memo from the board of directors of the National Petroleum Marketing Company (NP) revealed that the board had collectively decided to increase the price of LPG gas (cooking gas) through the introduction of a “service charge “.

The Trinidad and Tobago Petroleum Dealers Association (PDA) has therefore called on the entire board to resign, in light of the board memo.

NP issued a statement on Thursday apologizing to Energy Minister Stuart Young for the proposed increase in the price of LPG through service charges, and blaming an employee who it said did not have the authorization to publish a communication concerning such an increase.

The move came after the Express discovered on Wednesday that an NP official had published an internal email authorizing an increase in LPG via a service fee. The move was revealed shortly after Finance Minister Colm Imbert said on Monday that the kerosene and LPG subsidy would continue.

Young made it clear that the government subsidy remains on LPG, which sells for $21 per 20-pound tank.

Memorandum No. 61 of 2021 from the NP Board of Directors is titled “Request for Approval to Implement a Service Charge on the Sale of 20lb LPG Cylinders at NP Gas Stations”.

The memo stated that the board had reviewed board memo number 61 and decided:

1. Implement LPG service charge on the sale of 20 lb LPG cylinders at NP service stations;

2. Amend the existing dealer contract to facilitate the sharing of the respective LPG service fee 60:40, between the dealer and NP, respectively. Also, leave concessionaires the autonomy to set this service fee, in response to considerations of competition and price sensitivity, specific to each service station.

Deceitful

and misleading

The PDA said NP’s board must step down over the ‘odiousness and disgrace’ they have brought to the company. NP’s Board of Directors includes Sahid Hosein (Chairman), Marcus Knaggs, Nadine Nabie, Marilon David and Janille Huggins.

When the case first came to public attention, the PDA said the NPMC board said the instruction to raise the price of LPG was not authorised.

The PDA said it has become clear that the board has approved the decision to implement an increase in the price of LPG to the public, simply to achieve additional rent.

The PDA said NP’s revenue of $3 billion provides them with legal cover and a position to act in a way to persecute citizens at will and without consequences. The association said NP’s apology rings hollow, dishonest and misleading, and is just a ploy to maintain their position.

“The president and the board will never have the public’s trust again. Therefore, to show good faith, we call on everyone involved in this ultra-vires decision to immediately submit their resignations to the Minister of Energy and Energy Industries, so that he can build confidence in a new team at the future,” said the PDA.

OWTU: Questions

for the president of the NP

On Thursday, Oil Field Workers’ Union (OWTU) director of education and research, Ozzie Warwick, also spoke about the memo from the board, saying the NP president had many questions to answer. to respond.

He said board notes reveal that the discussion on this took place in September.

In a video on Facebook, Warwick said in his mailbox that he found an “interesting” note from an NP board meeting held on September 15, 2021.

He read the document, which spoke of a request for approval to implement a service charge on the sale of 20-pound LPG cylinders at NP service stations.

He said LPG is what most families use for cooking, as he noted food prices had already risen significantly.

He said the board memo further stated that he would amend the existing contract “to facilitate the sharing of the respective 60/40 LPG service fee between the dealer and NP respectively”.

He expressed concern about giving autonomy to dealers, as noted in the memo from the board.

“So any gas station from anywhere in any part of Trinidad and Tobago can apply whatever service charge they deem and will ensure they have an increase in their profit margins. , and who do you think will suffer?

“The board, the chairman, he has to respond to that,” Warwick said.

And Opposition MP David Lee said Thursday that Young needed to take action against the board and launch an investigation into the actions of the state-owned company.

“Failure to withdraw, reprimand or take action by the minister against the board and CEO of NP would suggest that this was not a simple mistake, but a calculated mistake supported by the government,” he said in a statement.

“Even more damning, it appears that NP’s board and CEO are playing it smart, as inside sources have suggested or alleged that NP intends to label these cost increases as ‘service charges’. “, did he declare.