23 Oct 2008

Fuel retailers in Solomon Islands complain over govt's retail price

11:47 am on 23 October 2008

The Solomon Islands Chamber of Commerce and Industry says fuel retailers are complaining that the current government set retail price is forcing some retailers out of business.

The SIBC reports that the Chamber says currently the government sets a top limit to how much retailers can charge for their fuel per litre.

It says the present limit allows for retailers to charge a retail price 50 cents above the price they purchase the fuel.

The Chamber says from this margin of 50 cents, the retailer must then pay all costs including electricity, water, staff wages, staff training, maintenance, insurance and tax on company profits.

It says due to inflation, all costs for the retailer continually rise, whilst their gross profit margins stay the same.

A number of retailers have informed the Chamber of Commerce and Industry that under the current price control, the business of selling fuel is not viable.