Service Station – By Sharon N Simon
Service Station Operators Demand
The operators of all 21 service stations across Antigua and Barbuda have jointly petitioned the government for a long-overdue increase in dealer margins, warning that three decades of financial strain have made the current model unsustainable in the long run.
The Service Station Dealers Association issued the petition in direct response to national consultations on the minimum wage increase, stating that the proposed labor cost hike has made an already untenable situation critical. The Association, however, wants to make it clear to the public that they encourage the minimum wage increase, as they believe everyone is entitled to a living wage.
A letter signed by all 21 operators was sent to Prime Minister Gaston Browne on March 23, 2026; however, they stated that no response has been received to date.
The Association said the 8 percent margin currently allowed to service stations is not only unfair but unworkable, considering that food retailers receive 15 percent on price-controlled items—almost double what gas stations earn—while wholesalers are permitted up to 20 percent.
Secretary of the Association, Maurice Percival, said operators have absorbed enormous financial strain over 30 years while weathering significant increases in the cost of living and operational costs. The Association is calling for a minimum margin of 10 percent—the bare minimum they deem necessary to keep stations viable.
“There appears to be a wide misconception that gas stations are thriving and making big money,” the Association stated. “This is simply untrue. We are suffering and have been for over 30 years. We cannot bear this strain any longer.”
The petition was directly prompted by the government’s minimum wage consultations, during which it became apparent that service stations would face even greater disadvantages—being required to pay higher wages while locked into a margin unchanged since the early 1990s. The Association argues that no business model can survive rising labor costs on top of a fixed, artificially low margin.
The Association is also demanding that the government publicly release the “fuel price build-up”—the methodology used to calculate the consumption tax on fuel.
A longstanding member of the Association explained that while standard imports follow a transparent CIF (Cost, Insurance, and Freight) calculation with published duties and taxes, the consumption tax on fuel remains “clouded.” Historical calculations, he said, have shown that tax reaching as high as 163 percent of the CIF value. The Association says releasing the build-up publicly “will clearly show that gas stations are not getting a fair yield.”
While the government maintains it subsidizes diesel by approximately $1.67 per unit, the operators do not dispute the figure but challenge its significance. Stations sell between 8.5 and 9.5 times more diesel than gasoline. The member argues the diesel subsidy may be little more than a figure on paper, easily offset by the high tax revenue generated from gasoline sales. “The retailers,” he said, “are effectively subsidizing the public’s fuel costs—not the government.”
The Association remains willing to engage in dialogue but warned: “Failing such, we will consider all options available to us.” For 21 stations and their employees, the demand is simple: a fair margin and transparency in a formula that affects every motorist every time they fill their tank.
