PETROL STATION operators yesterday announced they would be going on indefinite strike from tomorrow after talks over the renewal of a collective agreement with oil companies collapsed yesterday.
Station operators demanded oil companies inject £20,000 a year for each station to cover operational costs, saying they were losing up to £22,000 a year running their petrol stations.
The dispute began last year when the collective agreement between the two parties expired. The problem arises from the amount of commission paid to petrol station operators, as well as staff to meet the needs of running the stations.
STUDIES
Both station operators and oil companies maintained they had carried out studies to support their respective arguments, and the government was asked to mediate between the two parties in order to reach an agreement.
Although oil companies agreed on a Commerce and Industry Ministry suggestion for an independent study to be carried out to determine who was right, petrol station operators refused, saying the study would take too long.
Last night President of the Pancyprian Association of Petrol Station operators (PAPS), Pambinos Charalambous told the media petrol station operators had no other choice but to go on strike.
“We are not striking to punish the Cypriot people, we are striking because we can’t live like this. To work 13 hours a day we must have a viable income; at the moment it does not pay for us to operate.”
In a statement yesterday, oil companies expressed their disappointment at PAPS’ decision to go ahead with the strike.
“Their decision to go on strike was taken at a time when negotiations were going well and most of their demands were being met,” the statement said.
“Our position is that the commission payable to petrol station operators should be re-adjusted but there is a difference of opinion on how big the increase should be.”
Commerce and Industry Minister George Lillikas said yesterday he was in no position to take any decisions to satisfy station operators’ demands for increased commission without the necessary evidence.
“If I took an initiative without having the evidence it would mean the state would have to spend £5 million in total to meet their demands, and the outcome would fall on the consumer, since fuel prices would go up,” Lillikas said.
“Petrol station operators said they would accept an independent study only if it centred around the operation of their carwash, something which we refused because the study would not be comprehensive.”
The strike could mean that motorists will be rushing to the occupied areas to fill up, despite higher costs in the north.
The president of the association of the petrol station operators in the occupied areas, Niyazi Cagaloglu yesterday expressed concern over such a possibility, saying that out of the 110 stations in the north only 70 to 80 of those could handle large numbers of motorists in the long term.
“In the short term, we should not expect any shortages or difficulties if there is an explosion of Greek Cypriots using our petrol stations due to a strike,” Cagaloglu said.
“There are two petrol companies in operation in the north, Altinbas Petrol which operates ALPET petrol station and Turkish Cypriot Petrols.
“These two companies will be able to handle an increased demand for about three or four days,” he said.
“But in the long term, petrol stations in the north may experience some problems and chaos on an individual basis as some stations will not be able to handle the traffic,” he added.
A litre of petrol, leaded or unleaded, sells for about 50 cents in the north, compared to 48 for leaded petrol and 44 for unleaded in the south.
