RUBIS West Indies Limited, Dominica (RUBIS Dominica) announces the suspension of fuel sales to its customers, following significant financial losses incurred since entering Dominica in 2011 and which have accrued at an even greater pace for the past six years. These losses are due to highly unfavourable mandated fuel prices, which are below the true importation value of fuel.
A similar action had been announced by RUBIS Dominica in 2021. However, at that time, the Government of Dominica agreed to implement some changes to the regulated prices aimed at partially restoring the profitability of the fuel distribution business in this market, with further actions promised for the first quarter of 2022. Unfortunately, the Government of Dominica has not taken any further actions to restore the profitability of the fuel distribution business and RUBIS Dominica has continued to incur significant losses as a result.
Regrettably, the regulated fuel prices that have been in effect for most of 2022 continue to be substantially below the true cost of importing fuels and therefore, petroleum products are heavily subsidized by RUBIS and other fuel importers.
RUBIS Dominica will continue to engage with the Ministry of Trade, Commerce, Entrepreneurship, Innovation, Business and Export Development to seek the implementation of a regulated pricing structure that would reflect the true cost of importing fuels into Dominica and would generate a reasonable return on the fuel distribution investments in the country. RUBIS Dominica will resume fuel sales when such a price structure is implemented.
RUBIS Dominica wishes to clarify that it has allowed its Retailers to continue to sell fuel to the driving public at RUBIS Service Stations through our fuel dispensing equipment.
However, as the fuel will no longer be supplied by RUBIS Dominica during this period of suspension, we cannot guarantee that fuel sold at our branded stations will be of the
same quality as our Ultra Tec fuel.
SOURCE: PRESS RELEASE