COMMENTARY: Who is holding the hammer over the last nail? It’s RUBIS today

RUBIS employees protesting loss of employment

*Editor’s note* The views expressed in this commentary are not necessarily those of DNO or our partners.

In my last commentary, I focused on the issues dealing with curbing the loss of employment in a struggling economy and stemming that tide of social disintegration in our country. There were many unanswered questions. Since then, light has been shone on some but more questions have arisen.

 

How have the other petroleum distributors been involved?

The uneasy silence of the other petroleum importers and distributors is still of major concern. Do they really care about the impact on the public, their clients, and employees? However, they were not always silent. I was presented with a letter, which is apparently in the public domain, addressed to the Prime Minister dated August 5, 2022, and captioned “Unsustainable Losses Of Petroleum Importers In Dominica.”

The letter was signed by
(i) Gregory F Georges, CEO, West Indies Oil Company Limited,
(ii) Mauricio Nicholls, CEO, RUBIS West Indies Limited, and
(ii) John Gormandy, CEO, T&T National Petroleum Marketing Company Limited.

The letter was copied to Hon. Ian Douglas, Minister of Trade. The letter refers to a meeting held on July 28, 2022, between Mr. Georges (apparently representing all three companies) and the Prime Minister, and presumably sought to summarize discussions and agreements at that meeting. The letter outlined four (4) areas for which actions were necessary to re-establish profitability, including a return on investment of 12% (not the 15% guaranteed profit previously established by government).

One of the expectations outlined in the letter was that an agreement between these companies and government would be signed by August 26, 2022. The letter further confirmed the companies’ willingness to meet the Prime Minister at his request during the week of  August 22, 2022, apparently to finalize the agreement.

It is apparent, from recent developments, that an agreement was not reached by August 26, 2022, and it is unclear whether the Prime Minister responded to or met these companies during the week of August 22,  2022.

What is certain is that the companies all admit to losing money from their trade. What is also unclear is why the two other companies are playing chicken.

 

Is the formula used to establish the maximum selling price faulty?

The Letter quotes Mr. Georges as saying “The fundamental [issue] is that the landed cost used by the Ministry of Trade in price build-up is substantially lower than the actual landed cost incurred by companies”.

It further implies that on average, in establishing 2021 maximum fuel prices, the Ministry of Trade was using landed costs that were lower than the actual costs to these importers by EC$0.536 and EC$ 0.170 per imperial gallon of gasoline and diesel respectively. This seems to confirm RUBiS’ numerous statements that importers are not simply making a loss, but are actually subsidizing two fuel prices on the Dominican market.

On September 15, 2022, the Prime Minister stated, “It’s not that we are selling the petroleum products less than what it is imported into the country.” While this statement may not be wholly untrue, it is obviously meant to misguide the public.

I have learned that the worst lies are half-truths. At what point does the 2003 pricing mechanism take the imported price: at the port before customs, at the value after customs and other government taxes, or after the importers include their cost of getting the products into their tanks?

Has the Prime Minister lost touch with what is happening; does he lack an understanding of economics and mathematics; or is he simply dishonest and aims to misguide the public?

 

Does the Government know when a company makes profits?

The statements by the Prime Minister which implies that RUBiS and by extension the two other petroleum importers are dishonest in saying that they are not making a profit are rather disingenuous.

“It’s not that we are selling the petroleum products less than what it is imported into the country, but they are asking for an increase in the profit margin”

Every company operating in Dominica has to file an annual income tax return to the Inland Revenue Division accompanied by audited financial statements. These submissions tell the government whether and how much profits this company makes and how much corporate tax is due if a profit is made. So the Government of Dominica knows how much each and every legitimate company operating within the laws contribute to the economy.

 

What benefit is there in writing the Government of France?

In a later statement 5, the Prime Minister indicated that he will write a letter of complaint to the Government of France about RUBiS. I wonder if he would accompany that letter with the importers’ letter of August 5, 2022, and in like manner then, complain to the Governments of Antigua, and Trinidad and Tobago, supposed shareholders in the other two referred companies. But the question remains, what is the point?

Is it to admit that our government cannot manage such simple affairs and use it as a go-before-me plea for unwarranted assistance? Is it our way of asking the “imperialists” to subsidize fuel prices–given the failure of the ALBA project? The whole outburst is shameful and points to crisis leadership, strategy and performance.

 

So what remains the bottom line if the last nail is hammered in?

RUBiS indicates that it would move from suspension to ceasing operations on September 30, 2022 – in two days – if the government fails to act fairly. So what will be the path from here:

(1) RUBiS will shut down operations and wait until the price mechanism becomes fair and enabling.

(2) Will T&T NPMCL and WIOCL muster the economic balls to suspend fuel as well?

(3) More jobs will be lost and the economy becomes more unstable. Social pressures will
increase. Criminality will be the beneficiary.

(4) Government, not finding an external means to subsidize fuel prices, and being unable to
remove IMF-imposed fuel taxes, will be forced to establish a fair mechanism for
establishing maximum selling prices for petroleum products.

(5) Would a new parasitic and convenient company evolve from intentional destruction
to secure that guaranteed 12% or 15% profit withheld until then?

Sadly, Dominica seems to be engulfed with a governance ideology that seeks to destroy what the politicians cannot control or personally benefit from. Is this just another such case? How much longer will its people tolerate this?
We all will be called to account for our deeds, even to the least of my brothers and sisters. We will also be answerable for our silent accommodations in the face of injustice.

We will wait for the next few days to see if there is a conscience strong enough in the ranks of government to hold back the hand with the hammer over the employment coffin of our brothers and sisters. It is truly an unnecessary and uncaring action towards the loss of employment of hard-working Dominicans. ¡Qué lástima!

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16 Comments

  1. Ti Garcon
    October 1, 2022

    I can’t support Rubis in this as they themselves are too secretive and disingenuous.
    How much money does the government owe Rubis, and should this money be paid would they become more financially stable?
    Is it true last elections Rubis went along with Skerrit’s campaign and was giving his motorcade free gas? Doesn’t sound like you were in trouble then!
    What is the current pricing mechanism, because in July when a barrel was $120 gas was at ~$16.50, today a barrel of oil is $80 and gas is still ~$16.50!!!
    Failing to address this issues just makes Rubis look like a bunch of idiots. Why should NP join them when they get a commission on a gallon. If they sell double within the same time frame and with no additional costs, then they’ll double their revenue stream.
    Maybe Rubis buys their gas from a more expensive source… unless they all by form tge same source and it comes on the same boat which is very unlikely.
    Rubis come clean and tell the whole truth- no secrets!

    Hot debate. What do you think? Thumb up 3 Thumb down 6
  2. Gary
    September 30, 2022

    One of the most dishonest acts of partisan politics is the deceptive
    and malicious use of propaganda skewing facts. It is time for us to be honest and stop that mischievous political agenda, some of which is personal gratification at the expense of the nation interest. Making a statement, quote, “Dominica seems to be engulfed with a governance ideology that seeks to destroy what the politicians cannot control or personally benefit from.” wow, is this the problem before us as a Nation as it regards this present issue of The Government working in the interest of the Country.

    Every Country on this planet is grappling with the same issue with Multi National Gas and Oil Cooperations with profits Sky rocking and their resistance to lower their prices https://www.marketscreener.com/quote/stock/RUBIS-37262425/news/RUBIS-2021-annual-results-increase-in-earnings-and-proposed-dividend-acceleration-in-renewable-e-39726095/
    As to ¡Qué lástima!. Viva Dominica.

    Hot debate. What do you think? Thumb up 1 Thumb down 11
  3. Just Asking
    September 30, 2022

    I support the gov’t fully on this. It’s trying times, Rubis is not with us, is it?

    Hot debate. What do you think? Thumb up 2 Thumb down 14
  4. Juanita
    September 29, 2022

    It is said a bad workman blames his tools. The question is, who is holding the hammer over the last nail? Well, one opines that without a doubt, it is the workman for sure! And when the workman has the mentality of a hammer, every problem looks like a nail. It doesn’t matter if the workman is French, American, or Dominican.

    President Obama once famously said that you do not need to use pliers when you can use a tweezer. Problems are inevitable when the workman cannot cannot tell the difference between the tools in his toolbox or overestimates the size of his hammer. And, the crapauds will have a field day smoking their pipes when the workman uses the hammer indiscriminately. That said, the turn of events with Rubuis was entirely predictable.

    Well-loved. Like or Dislike: Thumb up 12 Thumb down 1
    • Gary
      October 2, 2022

      Why such imaginary rhetoric and preconceptions in your comment. Do you know what you are doing when you say, quote, “the turn of events with Rubuis was entirely predictable, you are molding a perception in stone with the aid of your political partisan beliefs and not looking at things for what they are, which unfortunately is sad.

      Hot debate. What do you think? Thumb up 1 Thumb down 10
  5. Lin clown
    September 29, 2022

    When the price of gas was $18.66 per gallon Beta and IBO told the bus drivers,they should put boots on the ground and go on strike.The bus drivers ignored those two AHOLES.Today the price of gas has gone down to $16.00 they are singing a different.They have no sympathy for the bus drivers.Yes Dr.Beta as long as JAH KA.SES like you continue to live on this death,we will always love our PM.You must not only post comments,go discuss RUBIS with the bus drivers.Tell them RUBIS should be making a bigger profit than they are making now.

    Hot debate. What do you think? Thumb up 1 Thumb down 22
    • Beta
      October 3, 2022

      You for sure are as thick as a blank of wood. Usually I ignore you but ever so often I have to let you know the truth, Ahole!

  6. Jonathan Y St Jean
    September 29, 2022

    Skerritt lacks an understanding of economics and mathematics and he resorts to lying and he’s dishonest and aims to misguide the public. After 20 years he’s believing that tough talking down to citizens is leadership. The sad part of all of this is that the circus clowns who serve with Skerritt are in fear of him and won’t make the facts of the situation clear to their supreme leader. If Skerritt was educated he would have realized that dictatorial speaking to the citizens of the country is just foolish and won’t make the situation better. All the failed initiatives by this one man government are so glaring and the only thing which keeps the cabal in office is what the highest court in the subregion said must never happen again, stealing of elections. Whilst we await word on the fruits of the work by Dennis Byron, the double doctorate dude continues to make a mockery of himself and the country. The petroleum importers will win this saga just like the bus drivers did.

    Well-loved. Like or Dislike: Thumb up 12 Thumb down 1
    • Ibo France
      September 30, 2022

      You-Mr. St. Jean – “Skerrit lacks an understanding of economics and mathematics…”

      What do you expect? This man has never had a single formal lesson in neither math nor economics as an adult. Putting Roosevelt to lecture us on how to achieve economic success is to put a bartender to lecture a class of nuclear physicists. INCONCEIVABLE!

      Well-loved. Like or Dislike: Thumb up 6 Thumb down 0
  7. Mark
    September 29, 2022

    Mr. Leblanc did not provide any details for the price increase. It would have been helpful if he at the very least stated the current mark up (%) on the product. We know they’re asking for a 12% rate of return on investment (this is a terrific rate of return by any stretch) in order to re-establish, yes I did say re-establish profitability but that’s all the information we have. Don’t forget RUBIS’ false claim of losses for 11 years.
    You seem to be using the other energy vendors as props. Why? Is RUBIS incapable of stating their own case? What is your reason for calling on the other vendors to “Show more Balls”? Are you really weighing all the facts in the matter or is this just another political play at disrupting the country? Come clean and state your true intentions.
    This is a one sided political commentary. Have you given any thought of the impact a rate increase will have on everyday motorists, bus drivers and their riders, taxi service and their passengers?
    THINK…

    Hot debate. What do you think? Thumb up 2 Thumb down 17
  8. Ibo France
    September 29, 2022

    It’s quite evident, Roosevelt is no leader. Almost everything he does turns to abject failure. The banana industry, agriculture, the local economy, foreign direct investment, 40 year old ROSS U. This poorly educated, unintelligent buffoon is a human wrecking ball.

    The DLP operatives always try to distort the truth just like their present Sultan. From their public pronouncements, one would get the impression that is RUBIS alone that has a problem with the landing prices of fuel. This article has cleared that up.

    Now, more citizens will join the ever growing long line of the unemployed. Does Roosevelt care. Not one iota!

    Once the Chinese businesses continue to populate the local landscape, the Chinese people have full employment, Roosevelt is elated.

    To restore a Dominica that works for all native citizens Get rid of the stumbling block to the progress of Dominica and its people.

    Well-loved. Like or Dislike: Thumb up 23 Thumb down 4
  9. Beta
    September 29, 2022

    This is a Carbon Copy of the RU Medical School saga. Once again there are more questions than answers. But Dominicans still love their CM.

    Well-loved. Like or Dislike: Thumb up 25 Thumb down 3
    • Gary
      October 1, 2022

      Why you guys just make ludicrous statements, do you know what a carbon copy of something is, lol, be content with your ludicrous statement to satisfy your political partisan beliefs. Oh, so now you guys have a new buzzword CM. Tell you what Dominicans are satisfied with The Government they elected.

      Hot debate. What do you think? Thumb up 1 Thumb down 7
      • Beta
        October 2, 2022

        YOU are the carbon copy of that creature with a bright red nose that runs around in a circus and forms the fool all day long. You got it now? We all know that you are a little slow on the uptake.
        P.S.: CM is not a buzz world it’s the true description of that man that thinks he he ‘in charge’ of things.
        Little boy don’t start with me…! I quickly knock you of your red high chair. …….boy!

        Well-loved. Like or Dislike: Thumb up 6 Thumb down 0
        • Gary
          October 4, 2022

          You know what is the most profound absurdity is, you sitting behind a computer and deciding what a person is driven by your political partisan beliefs what a waste of your imagination, partisan politics and the things it can do to the mind throwing away reason to the wind, so long.

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