A DRIVER filling up at a New Providence gas station. Photo: Moise Amisial
By LEANDRA ROLLE
Tribune Chief Reporter
lrolle@tribunemedia.net
PRIME Minister Philip “Brave” Davis announced last night that his administration has approved a margin increase for gas retailers of 25 cents per gallon for gasoline and 15 cents per gallon for diesel.
Mr Davis did not specify when the new rates will take effect but said the impact on the Bahamian people would not be as severe as in the past.
“It is manageable when we look at first of all how our gas prices have declined over the last year and continue to decline, and we expect that gas prices will continue decline through to at least December of this year,” he said during an appearance on ZNS’s new show, “The Rundown with Clint Watson.”
His comment came after gas retailers announced plans to protest at Parliament tomorrow over the government’s failure to address to their requests.
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.
Prime Minister Davis suggested yesterday the government’s delay in implementing the increase was because the timing was not right.
“The retailers were well aware of the challenges that we’re having and that they were having,” Mr Davis added. “I was sympathetic to them. About a year or half ago, we did make an initiative to assist them which we did for which they were grateful, but and we promised to get back to them on this matter, and we finally got a resolve, and the time is now right for us to do what we’re doing, because they will not have the kind of negative impact on the Bahamian people that would have it would have had if we’d done it sooner.”
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 months of negotiations and were ready to close their businesses for a “day or two” to show their displeasure.
Comments
moncurcool 3 months, 1 week ago
Amazing how gas prices are falling globally, but yet The Bahamas still has outrageously high gas prices, that are about to get even higher.
ExposedU2C 3 months, 1 week ago
SNAKE
Sickened 3 months, 1 week ago
Is it too sensible to put both government and the retailers on a fixed percentage along with a minimum?
That way if fuel prices drop to $1 then both parties can charge their minimum mark-up. And if the price goes to $10 a gallon they both charge the percentage - gov't gets their cake either way and the retailers will always know their spread.
ExposedU2C 3 months, 1 week ago
Government needs to control the price per gallon that the enterprises controlled by the most corrupt and insatiably greedy Snake earns. But don't hold your breath for that to happen while the sinister Snake has his serpent's tongue scaring the hell out of our most corrupt and dumb PM Davis.
bahamianson 3 months, 1 week ago
So , grocery store prices will increase , as well as all other consummables (sp) that rely on transportation.
M0J0 3 months, 1 week ago
Everything rising but ya salary but yet they want you to live. but trying to kill ya.
TalRussell 3 months, 1 week ago
“Ya'll” go Bananas trying to collect your 25 Cents per gallon of Gasoline price increase out of 96.9 GuardianTalk airing of The Foundation with Comrade Howard "Please Mister Down On Your Luck, Don't Touch Me Bananas" Grant. -- That displaying a lack of a "single banana" of compassion. -- Yes?
Proguing 3 months, 1 week ago
In other words, the whole world will benefit from falling oil prices, except Bahamians…
mandela 3 months, 1 week ago
The government earns millions from the vehicle sector, gas and licensing fees, but yet the roads are garbage, all they want is money, pure jokers.
TalRussell 3 months, 1 week ago
Remember, -- Until there is a democratically voted-in socialist form of government, -- It will remain all about the money money money mooneey, moneeeyyy. -- Yes?
Proguing 3 months ago
Like in Venezuela?
sheeprunner12 3 months, 1 week ago
Hold your breath ...... Snake & Pike will strip the last remaining coins from the pockets of the average/poor Bahamians.
This is a far worse national travesty than BaTelCo in 2011.
BONEFISH 3 months, 1 week ago
One of the many problems in this country we have, is an increasingly unworkable economic system. Life in this country is becoming harder by the day for many of it's citizens. You see it daily on the island of New Providence. This margin increase will just be an additional burden to the citizens of this country. It would better for the government to reduce it's taxes on fuel and give the retailers the increase in margins from that.
TalRussell 3 months ago
Like there are not already enough negative social effects from motor vehicle ownership.-- Yes?
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