The Fair Trading Commission (FTC) has launched investigations into possible anti-competitive practices in the pricing and distribution of petroleum products, following complaints from gas station operators against large petroleum marketing companies.
It comes as Jamaicans face rising fuel costs triggered by the US-Iran conflict. The Jamaica Gasolene Retailers Association (JGRA), whose complaints triggered the inquiry, said operators had raised persistent concerns over contract arrangements, pricing practices, and distribution terms imposed by the two suppliers.
“The association has been receiving persistent complaints from operators about conduct in the distribution of petroleum products that is hindering their operations,” said JGRA President Philip Chong.
The investigations covers “petroleum products” which typically include gas, diesel, lubricants, and liquefied petroleum gas (LPG). Chong noted one example where gas sold at two “side-by-side” service stations, under the same brand, had different prices.
“It is about $20-$25 difference,” Chong explained. “We regard it as unfair and even prejudicial, in that it pits one against the other,” Chong added.
The FTC confirmed the investigation in its April newsletter, though it did not name the companies under scrutiny. Chung identified TotalEnergies and Rubis as the entities being investigated.
“No particular company is the target of the investigation at this time,” said FTC Executive Director David Miller, adding that the investigations remain in the inquiry phase, with the commission gathering information and assessing evidence submitted by stakeholders. No timeline was given for a determination. “We are carrying out an industry-wide investigation and analysis.”
Gas prices have risen 25 per cent since the start of the year, when a litre of regular 87-octane gas sold for $147.59, compared to $185.63 a litre on April 30, according to data from Petrojam, the nation’s oil refinery.
The FTC monitors conditions for fair competition rather than directly regulating prices.
“We have a responsibility to investigate every complaint and to give the party complained against an opportunity to respond. Not every allegation is properly grounded under the Fair Trading Commission Act, and our role is to ensure that the marketplace operates fairly and competitively,” Miller said.
The largest marketing companies are TotalEnergies, which operates a network of roughly 80 service stations across Jamaica, the GB Energy which operates some 70 Texaco branded service stations, Rubis which operates some 50. Fesco is on track towards 28 services stations this year, and Petcom operates 24 listed service stations and LPG filling stations.
Jamaica spent US$1.75 billion on mineral fuels imports in 2025, down from US$1.9 billion in 2024, according to data from the Statistical Institute of Jamaica, making petroleum the country’s single largest import category by value. Fuel and lubricants consistently rank among the country’s largest import categories. Those costs face additional upward pressure from the US-Iran conflict, which has spiked global energy markets since late February. Brent crude surged more than 55 per cent from around US$72 a barrel before the war began to nearly US$120 at its peak, as fears mounted over supply disruptions through the Strait of Hormuz – the strategic waterway through which roughly 20 per cent of the world’s oil trade normally flows.
neville.graham@gleanerjm.com
