Fair Trading Commission Probes Petrol Pricing as Fuel Costs Climb

The Fair Trading Commission (FTC) has opened an inquiry into suspected anti-competitive conduct in how petroleum products are priced and distributed across Jamaica, acting on grievances filed by service station operators against the country's leading fuel marketers. The probe arrives at a time when motorists are absorbing steeper pump prices linked to the ongoing US-Iran conflict.

The Jamaica Gasolene Retailers Association (JGRA), which lodged the complaints that prompted the review, said station owners have long flagged worries over the contracts, pricing decisions and supply terms set by the two suppliers concerned.

"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 inquiry takes in "petroleum products" broadly, a category that ordinarily covers gasolene, diesel, lubricants and liquefied petroleum gas (LPG). Chong pointed to a case where two service stations sitting next to one another and flying the same brand were charging different rates at the pump.

"It is about $20-$25 difference," Chong explained. "We regard it as unfair and even prejudicial, in that it pits one against the other," he added.

The FTC acknowledged the investigation in its April newsletter but stopped short of naming the firms involved. Chong identified TotalEnergies and Rubis as the companies under examination.

"No particular company is the target of the investigation at this time," said FTC Executive Director David Miller, who noted that the matter is still at the inquiry stage, with officials collecting material and weighing submissions from interested parties. He gave no date for when a finding might be reached. "We are carrying out an industry-wide investigation and analysis."

Pump prices have climbed 25 per cent since January, when a litre of regular 87-octane gasolene was retailing at $147.59, against $185.63 a litre on April 30, based on figures from Petrojam, the country's oil refinery.

The FTC's mandate is to keep watch over competitive conditions rather than to set prices directly. "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.

Among the dominant marketers, TotalEnergies runs about 80 service stations islandwide, GB Energy operates roughly 70 outlets under the Texaco banner, and Rubis maintains around 50 stations. Fesco is on course to reach 28 stations this year, while Petcom holds 24 listed service stations and LPG filling points.

Jamaica's mineral fuel import bill came in at US$1.75 billion in 2025, easing from US$1.9 billion the previous year, according to the Statistical Institute of Jamaica, leaving petroleum as the single largest import category by value. Fuel and lubricants are routinely near the top of the country's import ledger.

Additional pressure on those costs is coming from the US-Iran conflict, which has rattled global energy markets since late February. Brent crude jumped more than 55 per cent, moving from around US$72 a barrel before hostilities broke out to nearly US$120 at its high, on worries about supply being choked off through the Strait of Hormuz, the waterway that ordinarily carries roughly 20 per cent of the world's traded oil.