The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

AS gas retailers prepare a protest as they continue to call for a margin increase, a government official yesterday said efforts are being made to create a formula that suits both customers and retailers.

At a briefing at the Office of the Prime Minister, press secretary Keishla Adderley acknowledged retailers’ concerns and said talks between the government, particularly the Ministry of Finance, are ongoing to find a resolution.

Raymond Jones, president of the Bahamas Petroleum Retailers Association, told Tribune Business a protest is planned on Bay Street when Parliament resumes next Wednesday over the government’s failure to implement a 25-cent-per-gallon margin increase. 

“The government is concerned about the health of those businesses, but it’s equally concerned about placing any undue burden on consumers,” Ms Adderley said. “So the focus continues to be on coming to a consensus, creating a formula that would be mutually beneficial and not overburden either party.” 

Ms Adderley admitted that while progress has been slow, finding a balance between retailers’ demands and consumer protection has been challenging.

When asked if a resolution could be reached before the year’s end, Ms Adderley responded: “I wouldn’t want to put a time on it but it is something that we want to come to a resolution on for obvious reasons.”

Gas retailers have repeatedly called for a margin increase, saying they can no longer operate under the current fixed-margin regime due to rising costs. Unlike other industries, where prices can be adjusted to cover increasing expenses, the Bahamian petroleum sector operates under government-controlled price margins that require approval for any changes.

The last margin increase for petroleum dealers was in 2011 when the Free National Movement (FNM) government led by Hubert Ingraham approved a 10-cent increase per gallon of gasoline, raising it from 44 cents to 54 cents. A 15-cent increase per gallon of diesel was also approved. Currently, the government collects over $1.60 for every gallon of gasoline sold in The Bahamas.

In June, gas retailers considered a shutdown after being disappointed by the absence of a margin increase in the 2024/25 Budget. Vasco Bastian, vice president of the Petroleum Retailers Association, said members were growing frustrated after 30 months of negotiations and were ready to close their businesses for a “day or two” to show their displeasure.

Initially, retailers sought a 30-cent increase in petroleum margins but later reduced the request to 25 cents. They also suspended their call for a diesel margin increase to avoid affecting boaters, heavy equipment operators, and jitney drivers.