A DRIVER filling up at a New Providence gas station. Photo: Moise Amisial
• Businesses could close down ‘for day or two’
• No change after 30 months of negotiations
• Bastian: I feel like I’ve been hoodwinked
By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
GAS retailers are considering a shutdown after being disappointed that there was no margin increase included in the 2024/25 Budget.
Vasco Bastian, vice president of the Petroleum Retailers Association, said members are growing impatient after 30 months of negotiations over a margin increase with the Davis administration and are ready to close their business for a “day or two” to demonstrate their irritation.
Speaking to Tribune Business yesterday, Mr Bastian said gas retailers are still recovering from the COVID-19 pandemic and find it “extremely difficult” to continue operating under the current rate structure.
He said: “The members were ready to shut down and shut down this country for a day or two and I’m the only one completely opposed to shutting down. It would inconvenience the Bahamian public who are supporting us in this effort and our employees who depend on us. Fifty nine out of sixty members are ready to shut down, for the last 30 months we’ve been to convince them to not strike and shut down, as far as yesterday.
“We are trying to be patient and professional in our negotations, but at this point, the members are calling for my head, they believe I am being too nice to the government. But we’re at a point now that I’m even frustrated. I’m disappointed because I feel that I’ve been hoodwinked. It’s extremely difficult, we’re still trying to recover from COVID.”
Gas retailers have not received a margin increase since the then Ingraham administration granted one 13 years ago.
Unlike virtually all other industries, which are able to increase prices to cover rising operating expenses, the Bahamian petroleum industry operates on price-controlled fixed margins that require government approval before they can be changed.
Dealers say that, especially following the post-COVID cost of living crisis, ever-rising expenses have effectively wiped out the 54-cent and 34-cent margins per gallon of gasoline and diesel sold, driving them into losses and placing some in a position where they are threatening to close their operations. The government, though, has been reluctant to raise the margins for fear it will increase fuel bills for motorists.
Mr Bastian revealed that retailers have reduced their request for a 30-cent increase in petroleum to 25 cents and have “paused” the request for a diesel increase as it would affect boaters, heavy equipment operators and jitney drivers.
He said he is “heartbroken” that negotiations have dragged out so long preventing retailers from making a profit and is ‘saddened’ by the way the Davis administration has responded.
He said: “I’m extremely disappointed with the way we are being handled. I’m totally in support of Bahamian businesses, I’m totally in support of trying to ensure that small, medium sized business like the gas station operators in The Bahamas and other small business in The Bahamas survive, but I’m heartbroken at the way we’ve been handled in the last 30 months.
“Really heartbroken that we as Bahamians with families and bills have not been given an opportunity to make a profit or continue to operate in The Bahamas, in this economy, in this environment. It’s just extremely discouraging and we’re saddened by the way we’ve been treated.”
Comments
Dawes 5 months ago
You've threatened this many times and nothing. Don't think anyone believes you anymore
TimesUp 5 months ago
Fear not, there will be another release tomorrow stating the opposite.
They have cried wolf many times and are perceived as not being serious.
propane66 5 months ago
These dealers jiving.....the problem in their business model is that there are too many stations for this small island......it's a volume business, so let the smaller operators leave.
The propane gas dealers have actually to deliver the gas in expensive trucks and have not had an increase in over 12 years.....I would side with them if they ever ask for an increase.
moncurcool 5 months ago
This again?
The boy who cried woif.
bcitizen 5 months ago
While I might agree they need a increase. They have threated shutdown to many times with no follow up. Their bluff has been called multiple times so it is not longer a threat.
Porcupine 5 months ago
Why isn't anyone asking what the hell government is doing in businesses business like this. Don't talk about a free market while imposing limitations on what a business can charge. If the government wants to protect and coddle the consumer, let them make direct payments to them to pay for fuel. Just like social services does. How many of these politicians have EVER run a business. But, they want to have a say in how much a business can charge. Is nobody schooled in economics in this country? If a business can make money by undercutting their competitors, let it be. Isn't this what a free market is? Yes. Every time an uneducated politician (most all of them) sticks their nose in something they know nothing about, we get what we see here. A failure. Put a fair tax on gas retailers and then get out of the way. Way too many politicians operating way above their pay grade.
propane66 5 months ago
Agree, price controls need to be abolished.
bahamianson 5 months ago
Wow, this comment is refreshing. But the politicians did stay at a Best Western Hotel before.
truetruebahamian 5 months ago
Absolutely.
bahamianson 5 months ago
You mean like the 45th warning? Ok, TANKS.
ExposedU2C 5 months ago
The financial pain these gas dealers are feeling is nothing compared to the financial pain that the very greedy Snake and his local and foreign cronies are about to inflict on the Bahamian people and their businesses thanks to the corrupt Davis led PLP government paving the way for the evil greedy Snake and his cronies to gain complete control over the generation and distribution of electricity in our country.
A prominent businessman said he could not believe corrupt Davis has turned over to his buddy the greedy Snake, and his buddy's local and foreign cronies, the ability to decide what electricity rates should be charged to a customer or whether the customer should be subjected to power failures of the kind that lowers the value of their business or property to the point where it must be sold for mere pennies on dollar with the greedy Snake lying in wait as the purchaser.
truetruebahamian 5 months ago
True.
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