The Tribune

By LETRE SWEETING

FUEL operators are excited over the recent drop in gas prices as well as expectations that prices will continue to decrease and stabilise.

The price of a gallon of gas rose to almost $7 last month, with prices in the Family Islands surpassing that amount.

Also last month, Esso Service Stations saw a fall in the price per gallon of gas from $6.96 to $6.66.

Since last week, prices at the pumps in the capital have been $6.29 at Shell, $6.30 at Rubis and $6.31 at Esso.

Yesterday, Vasco Bastian, vice-president of the Petroleum Dealers Association (BPDA), told The Tribune that he expects the recent decrease in fuel prices will be more long-term than previous fluctuations in the price of fuel.

“For now I think it should continue to decline,” Mr Bastian said. “I definitely see us going a little lower. Once the price of crude oil continues to decline.”

“This decline that you see now is a direct result of the reduction of crude oil on the global market. If crude oil continues to decrease on the global market, then we should see our gas prices at the pump continue to decline.”

 Mr Bastian, who had previously pleaded for the government’s assistance to bring relief to both gas operators and consumers, said that talks with the government have been suspended for now.

 “All the talks with the government right now are on hold, until we work out some other things that we’re trying to figure out, but for now all the talks are on hold right now,” Mr Bastian said.

 Fuel prices have soared globally since Russia, the world’s third largest oil producer, invaded Ukraine in late February.

 In June, Mr Bastian told this newspaper that in an effort to cut back on costs, some fuel operators, including himself, had to reduce staff hours. And he warned that laying off staff would be unavoidable if the situation did not improve soon. That same month, Rubis Bahamas announced a reduction of fuel costs from $7.27 per gallon to $6.89 per gallon.

 These comments came after the Petroleum Dealers Association and its members had two “successful” meetings with Prime Minister Philip Davis and his economic team, including Senator Michael Halkitis, minister of economic affairs, and Simon Wilson, the Ministry of Finance’s financial secretary in April, preceding the 2022-2023 Budget. Mr Bastian had said that this had moved dealers “closer to the goal posts” on some of the demands of fuel operators.

 Additionally, the Bahamas Unified Bus Drivers Union had also expressed concerns of the cost of fuel making it hard for drivers to sustain a decent living while balancing fuel expenses.

 Earlier this week, the Inter-American Development Bank made predictions that The Bahamas would invest approximately up to $64.5 million in oil-based thermal plants by 2030. So the energy demand will grow by 6.4 percent in the next eight years. These findings were compiled in a recent report released by IDB on Tuesday called The Energy Route of Latin America and the Caribbean.