The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

THE Davis administration is currently discussing how best it can bring relief to both gas operators and consumers in response to rising fuel prices sparked by the Russia-Ukraine war, according to Economic Affairs Minister Michael Halkitis on Friday.

Mr Halkitis spoke after meeting with members of the Bahamas Petroleum Retailers Association on Thursday to discuss their concerns about increased operational costs due to the hike, among other issues.

The sector had threatened to go on strike over the Easter holiday, citing economic hardship and the difficulties in operating under the current government’s imposed fixed margin.

However, the group did not follow through with the strike after meeting with government officials.

During an OPM press briefing, Mr Halkitis was asked whether the government had come up with solutions to bring relief to both motorists and gas operators following discussions with the BPRA.

He said: “There had been some representation from the gas station operators. They operate on a fixed margin, that’s one issue that they have. They also have issues when it comes to those operators who don’t own their stations and who have to, for example, have to pay rent and pay franchise fees and percentages on other things so it’s a very difficult environment for them.”

“We met with them about a week and a half ago and we had some initial discussions. They presented a proposal to us. We had a meeting again (Thursday) further to discussions and they presented some additional proposals to the government.

“We are looking at ways and the prime minister attended the meeting and he said to them that he’s committed to bringing some relief to them but it’s just a matter of working out how best to do it so that they can get the relief.

“They presented some more proposals yesterday (Thursday) and we undertook to go and study them and to come back to them with a position, hopefully to assist them effectively before we get to the budget in the next two weeks or so."

Asked about the details of proposals, Mr Halkitis did not want to say, only adding that the spirit of discussions was “very positive.”

“I don’t want to it’s just to say that we have to be mindful on the impact on the consumer when we speak about any margin increase, the impact on the consumer and the public and so we’re trying to find a way how we can bring some relief to them without negatively impacting the Bahamian public, but I will say the spirit of the discussions we’re very positive,” the minister added.

Earlier this month, Prime Minister Phillip “Brave” Davis told reporters his government was negotiating with several shipping companies to import fuel into the country at discounted rates to ease the burden on Bahamians.

He said negotiations with one of those companies had been successful thus far.

While Mr Halkitis was unable to provide any updates on those negotiations Friday, he said government officials remain optimistic the prices will stabilise soon.

“We hope that it doesn’t and prices of fuel because around the world, they fluctuate based on supply and demand and shocks, the latest shock being the war on Ukraine, and we were hopeful there would be a speedy resolution to it and that source of disruption would be removed. It appears that it might be a more protracted situation, but we’re hopeful that the markets can adjust in terms of the producers producing more to meet the demands.”

Local gas is currently priced at well over $6 per gallon at all major providers in New Providence.

However, some experts have predicted a high of $8 per gallon of gas by summer’s end.

On Friday, Mr Halkitis urged Bahamians not to worry prematurely, noting there’s still a chance prices could decrease in the coming months.