Motorists will still be able to pay for fuel using debit and credit cards at the 24 United Independent Petroleum Marketing Company Limited (Unipet) service stations across the country.
Although service station dealers represented by the Petroleum Dealers' Association (PDA) say they will stop accepting electronic payments for fuel purchases from tomorrow, Unipet CEO Dexter Riley said the company has not made any policy decisions on the matter.
He said: "At Unipet, we are continually reviewing our cost structure, we have not made a policy decision with respect to that call for action. Our first approach is to find cost cutting measures that won't adversely impact the public."
In a statement yesterday, Unipet said it respects the decision of operators to discontinue accepting electronic transactions as that action "reflects the dire financial circumstances which operators face in providing a safe and efficient service to the motoring public and the industrial sector."
Unipet said gas station operators are functioning on margins set by Government since 2005.
"Given inflationary trends and increased costs, operators are now running their businesses on $3.95 on every $100 spent on super gasoline.
"Looking at a similar situation, households today cannot cover their costs on the basis of 2005 wages so operators have a tremendous challenge to maintain the same level of service to the public on controlled margins which have remained unchanged since 2005. It is our hope that this matter will be reviewed by the Government and action will be taken to stabilise the industry," Unipet said.
In July, PDA president Robindranath Naraynsingh warned that the country's 170 gas stations were on the verge of collapse due to poor profitability margins from the sale of fuel. On Wednesday, the group announced that its stations will no longer offer electionic payment options effective tomorrow.
The PDA said in a statement: "At this time the retail petroleum dealers are faced with the difficult decision of either operating under-staffed, inconvenient stations, or reducing the cost of operations, in order to retain the employees that make your gas-purchasing experience safe, comfortable and efficient.
"While our primary duty remains the provision of fuel to the nation's consumers, we also have duty to the people we employ, who aid us in said fuel provision. Our industry is regulated by the Ministry of Energy and Energy Industries, and specific to the at-pump price of fuel, the Ministry of Energy works in conjunction with the Ministry of Finance to set this cost. Every part of the system that brings fuel from ground to tank, is governed by the Petroleum Act, 62.01."
The PDA said 200 per cent increases in the Business Levy and Green Fund Levy in January had the effect of "immediately destabilising the business of retailing fuel."
"You may have already noticed that smaller, neighbourhood gas stations have been shutting down after years in operation, unable to pay the staff required for operating and the steep increased taxes mandatory to our sector.
"We appreciate the inconvenience that this poses to those who have enjoyed the facility of electronic payment processing, and we are aware that is equally inconvenient to the dealers. However, this is the least jarring measure we can take to keep our nation's gas stations in operation, thereby keeping the vehicles in our hard-working population fuelled as well."