The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Gas station operators are seeking a 50 percent margin increase and for its calculation to be based on a percentage, as opposed to a fixed amount, amid threats that up to 80 percent of them may strike this Easter weekend.

Vasco Bastian, the Bahamas Petroleum Dealers Association’s (BPDA) vice-president, told Tribune Business that station closures could occur this weekend if the Government remains unwilling to adjust a tax structure that dealers say makes it increasingly hard to purchase large bulk fuel quantities from Esso, Rubis and FOCOL Holdings (Shell) as gas prices rise.

He added that he is trying to “hold off” any strike action by members over the Easter weekend given the disruption it would cause over the holiday as well as the potential damage to businesses and the wider Bahamian economy.

Mr Bastian said: “These gas station dealers are trying to strike to stop selling diesel and gas. It was going to be this past weekend but it probably won’t be until next weekend during the holiday weekend and, as the BPDA vice-president, I’m opposed to this. I’m trying to get these guys to meet with the Government and let’s talk before we take any type of draconian measures. This is no time to stop selling fuel.”

Petroleum dealers want a 50 percent margin increase, in addition to lowering VAT on gasoline. The last time petroleum dealers enjoyed a margin increase was in 2011, when the Hubert Ingraham-led Free National Movement (FNM) government granted a 10 cent increase per gallon of gasoline to take it from 44 cents to 54 cents. A 15 cent increase per gallon of diesel was also allowed. A 50 percent hike now would raise dealer margins to 81 cents per gallon.

Mr Bastian said: “Rubis, Esso and Shell independent dealers. They are all gathering together to strike this coming weekend. The gas stations owners can’t afford to buy fuel in a week or two if the Government doesn’t come and reduce this whole levy and taxes and other stuff, and come up with some national plan to make it more affordable for gas station operators to buy more fuel.

“The Government is going to run the risk that dealers cannot afford to buy fuel, and if they can’t buy it then the Bahamian people can’t buy it. I’m telling these guys not to strike; striking is a last resort. I’m not down for that. They have to be crazy. Before I do that I would resign. I would go and resign and become a consultant for the Government against them.”

He added: “But those guys are good guys. They just want their formula to be changed from a fixed margin to a percentage base, and if they get it switched from the fixed margin to the percentage base it would be better. They would be able to buy their fuel and have no intervention from the Government.

“But these guys are putting up all of the cash, buying all of the fuel, selling it to the public and they are losing. Because essentially, with the high cost of fuel, every time the gas prices goes up in The Bahamas the Government makes more money in taxes and VAT. So they’re saying for far too long we have been funding the Government with this, and we’re not going to fund the Government any more. We’re tired and we’ve had enough of this.”