The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

FOCOL chairman Sir Franklyn Wilson has criticised the recent margin increase granted to gas retailers, calling it “unfair” to wholesalers who have gone over two decades without any adjustment.

Mr Wilson expressed frustration that wholesalers, unlike retailers, are left behind, despite rising operational costs and inflation impacting both sides of the industry.

“The point is, wholesalers have not had an increase for a long time,” Sir Franklyn said yesterday. “It’s not fair, to be quite honest with you, but the wholesalers have to accept the fact that the retailers make the noise, and the politicians listen to them. That’s the reality; it’s not fair.”

He added that wholesalers last saw a margin increase for diesel in 2002, which he said “cannot be fair”.

In September, the government approved a 25 cent margin increase per gallon of gasoline and a 16 cent increase per gallon of diesel for retailers. The prices took effect on October 1.

Retailers had been lobbying for this adjustment for over two years, citing mounting operational costs and post-COVID inflation that have eroded their earnings.

In contrast to other sectors, where businesses can adjust prices to offset rising expenses, the Bahamian petroleum industry operates under government-controlled margins. This means any changes to fuel prices must receive official approval, leaving wholesalers unable to independently adjust their margins despite increasing financial pressures.

Prior to this recent hike, the last margin increase for petroleum retailers occurred in 2011, under the Free National Movement (FNM) government led by Hubert Ingraham.

At that time, the government approved a 10-cent increase per gallon of gasoline, raising it from 44 cents to 54 cents, along with a 15-cent increase per gallon of diesel.

When asked if wholesalers were suffering in the current economic climate, Sir Franklyn declined to comment.

He also refused to discuss whether wholesalers plan to push for a similar adjustment.

“Let me put it this way,” he said. “All I am saying to you is, just look at that and ask yourself the question, is that fair?”

While the new margins fall short of fully meeting petroleum retailers’ demands, industry leaders view it as essential for survival.