The Jamaica Gasolene Retailers Association (JGRA) has withdrawn threats to disrupt service to Government and Government-related vehicles.

Last month, the JGRA issued a 30-day ultimatum to Shell West Indies Limited to address increases for retailers who provide services to Government vehicles.

However, according to JGRA President Trevor Heaven, the members have decided to accept the offer that was placed on the table.

Mr. Heaven told The Gleaner that Shell has stated that it will put into effect a 16 per cent increase that should have been granted in the two-year contract starting January 2005 and ending December 2006. He said the increase would raise the mark-up to the dealer per litre from 59 cents to 68.5 cents.

Retroactive pay

The contract will be made effective from July 1, and retailers will receive retroactive pay from December 2005, a seven-month period.

Despite the increase, the JGRA head says Shell dealers would still be subsidising petrol to Government vehicles.

"We believe that it (retroactive pay) should be from January 1, 2004, bearing in mind the increases we have incurred. Sixty eight cents per litre is still woefully inadequate as this represents less than approximately 1.5 per cent profit margin," Mr. Heaven said.

Last month, retailers had requested an increase from a four per cent to six per cent profit margin to the retailers.