The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Gas station operators yesterday said in-store retail sales are down by up to 75 percent compared to pre-COVID levels due to weak consumer spending amid the pandemic's economic fall-out.

Vasco Bastian, owner/operator of the Esso station at the East Street/Soldier Road junction, told Tribune Business: “Nothing has changed because people are still not working. It was 80,000 persons unemployed the last time I checked.

"There is no money circulating, so there is no disposable income for persons to spend to come to the gas stations. So either they come for the fuel or they come inside briefly, and then they leave. In store sales are down by 75 percent.

Mr Bastian added: “This is better than nothing, because at the end of the day every little dollar helps. It is not back to pre-COVID-19 status but I am grateful for what we have. Those numbers before COVID-19 won’t happen until people are back to work and taxi drivers start moving around and coming in late at night. We aren’t making any money; we just have it open to say we that are open.

“Not being open 24 hours has impacted our business. Those additional operating hours, we have lost that. So if persons wanted something from the inside at the late hours, we are closed.” Mr Bastian, though conceded that even if gas stations were able to open for 24 hours it would make little difference to their financial health due to the high jobless rate and reduced incomes.

“People that used to fill up their cars are only putting in $20 now," Mr Bastian said. "People that used to get $20 are now only getting $5, and it is a direct reflection on the state of the country. Every dollar we appreciate from our customers. We want them to come back and spend their money, but they can’t right now and we understand."

Vowing not to give up, Mr Bastian said he was for the “long haul". He added: "We are committed to our staff. We ensured that we kept our employees on staff, so we aren’t worried about the Christmas season because we lasted for 10 months so far. Another few weeks won’t be anything significant. We just have to keep the faith.”

Retail sales allow gas station operators to earn a higher margin on certain products when compared to the price-controlled, fixed margin gasoline and diesel sales.

Sending a warning to the Government, Mr Bastian said: “We need to sit down with the minister of finance and reverse our fixed margin arrangement on gas and diesel to a percentage-based formula that ties into the cost of fuel as fuel increases.

"That means if our margins increase, and if fuel declines, we can still remain profitable. The current model being used in The Bahamas is a model that is outdated. It is not a model one should be using in this industry.

"We also want the Government to stop charging gas stations [Business Licence fees based] on gross turnover, because as it is now if you gross $1m in sales and only make $100 in profit they are going to charge you on the gross sales. That is wrong. You cannot charge gas stations on gross turnover for their Business License. It is just wrong.”