The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Financial Secretary Simon Wilson indicated on Tuesday that negotiations for a price margin increase with the gas retailers are progressing well and an agreement should be finalised by the end of summer.

He said: “I think those discussions are in abeyance we have a proposal before them and they have a common proposal before the government and I’m assuming that late in the summer we can get into trying to finalise it.”

Vasco Bastian, vice president of the Bahamas Petroleum Dealers Association (BPDA) confirmed to Tribune Business that negotiations are in a "good place" and he was grateful to Mr Wilson and other government officials that aided the resolution.

He said: “I think Mr Wilson is absolutely correct, we’re in a good place with our negotiations with the government. We're very, very happy with our negotiations. And Simon Wilson has been nothing more than five-star when it comes to dealing with us trying to get this matter resolved. We appreciate him. We respect him, the Prime Minister and the Minister of Economic Affairs for working with us and working for us during this challenging time, but we are very hopeful and appreciative of the sentiments expressed by Mr Wilson.”

Gas station operators have been in discussions with the government to increase their margins by 50 percent, which would raise them from the present 54 cents per gallon of gasoline to 81 cents. Their margins have not been adjusted in 12 years, despite rising inflation.

Mr Bastian acknowledged negotiations have been a "long process" but retailers are optimistic that a favorable resolution will be finalised in short order.

He said: “It's been a long process, but negotiations are never supposed to be short and sweet. Negotiations sometimes take time and we have the fortitude to ride out the storm. We've been riding the storm and working with the government to try to come to an amicable agreement.

“I think it just speaks volumes to our level of dedication, and also the dedication of the government in regards to making sure that Bahamians are treated fairly and it is just a reflection of how much the government cares about us and Simon being an arm of the government, representing the government from a financial point of view. We truly appreciate that and appreciate him. I think definitely we are happy and overjoyed I'm with where we are now. ”

Mr Bastian noted that rising electricity costs have been “very challenging” for gas station operators and other businesses that operate machinery continuously. He added that businesses must cut back on some expenses to ensure that electricity bills are paid.

He said: “Electricity, electricity costs, especially a business like the gas station and even hotels and even private hospitals like doctors also. These entities are run 24 hours, seven days a week. So you can imagine how challenging and how hard it is for us. When there's a slight increase in a type of electricity cost it's very challenging.

“But you know, we have to do what we have to do. We have to cut certain areas in order to continue to keep our light on.”

On Monday, Opposition leader Michael Pintard said Bahamas Power and Light (BPL) is in "crisis" and "weighing down" Bahamian businesses.

Mr Bastian, however, is of the opinion that rising costs of electricity is only one of the many factors that are "weighing down" Bahamian businesses. He added that the cost of theft, security, and other indirect costs add to the plight of local businesses.

He said: “I mean that's his view, there are other factors besides electricity that are weighing down Bahamian businesses, electricity is just one of them. We have security that has increased over the years, we have pilfering in retail spaces have increased over the years.

“We’ve had a whole gamut of different unrelated, directly related and indirectly related costs over the last several months. So I hear what the Opposition Leader is saying but there's more to that than just the electricity costs, there are other factors.”

Mr Bastian also noted that transitioning to renewable energy was previously proposed by Esso’s corporate representatives and although the proposal was not favorable at the time, they are more open to it due to rising electricity costs.

He said: “That's been something that's been proposed by corporate. We're looking into that but I think the current model as presented by cooperate to us wasn’t one that was clearly explained or something that we think was in our best interest at the time but at this point with the increased cost of electricity, all our options and opinions are on the desk right now for discussion.”