The Tribune

By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

BAHAMIAN motorists must brace for gas prices to soar as high as $7.50 per gallon with effect from today, one petroleum dealer is warning, adding that station operators may have to look at cutting operating hours and staffing.

Peter Roker, operator of Roker’s Gas Station, said he and other Esso dealers received notice of the latest increase shortly before speaking with Tribune Business on Friday, leaving little time to prepare for the impact on motorists and businesses already struggling with elevated fuel prices. It is unclear whether Shell and Rubis will follow suit, and on the same timeframe, although there is usually little difference between the three depending on when latest fuel shipments are received.

Gasoline at his station was selling for $7.06 per gallon before the imminent increase, with the new $7.50 price representing another significant escalation. “The doo doo might hit the fan Monday morning because gas going to go up to $7.50 Monday morning,” Mr Roker said. “We got a notice that our selling price for gasoline on Monday morning is $7.50. That's a 44 cents increase. That's a lot of money.”

He warned that the latest increase will place additional pressure on service station operators, whose fixed operating costs do not decline when fuel prices rise, while also increasing the tax burden on consumers.

“It's going to be a lot more difficult to run the business,” Mr Roker said. “At the end of the day, nothing changes. Your staff don't change. Your rent don't change. Your electricity don't change. Nothing changes.”

Mr Roker argued that the Government should consider introducing a VAT relief mechanism that would cap the 10 per cent tax on fuel at a certain amount, rather than allowing the tax burden to increase at the same rate as the per gallon cost. He suggested that a median or capped price could be established for VAT purposes, allowing consumers to receive some relief even as the underlying cost of imported fuel continues to climb.

“The Government may need to pick a median price and say, ‘Listen, we're only going to put VAT on a certain amount on this fuel thing’,” he said.

Mr Roker argued that gasoline should ordinarily cost no more than $3.50 per gallon, warning that without some form of intervention, further international market increases could push prices towards $10. “If it's now up to $7.50, it can go to $10,” he said.

However, Mr Roker stressed that service station operators are also struggling to absorb the financial consequences of escalating fuel costs, particularly given the extra expenses associated with keeping their businesses operational. He warned that dealers may have to reassess their operating models, including whether they can continue providing round-the-clock service, as electricity bills, staffing expenses and other overheads continue to rise.

Mr Roker said the pressure could ultimately have consequences for employment and operating hours across the sector, particularly for smaller gas stations with limited financial flexibility.

“The options might be don't have the 24-hour service,” he said. “It can affect employment. It can affect hours of operation. It can affect all different things.”

The latest increase also raises questions about the sustainability of discounts some retailers have introduced to help cushion the impact of higher fuel costs on motorists and commercial operators. Mr Roker said Roker's Gas Station currently offers a 22 cent per gallon discount on gasoline overnight, and a 12 cent discount on diesel throughout the day seven days per week.

He described the diesel concession as particularly important because of its implications for public transportation, construction and other commercial activities that depend heavily on the fuel.

“Twenty-two cents off overnight for gasoline, and then 12 cents, 24/7. That 12 cents, no matter how small, is very important because that affects the public transportation, that affects construction,” Mr Roker said.

His comments come as other fuel retailers have also explored targeted discounts for commercial customers, including jitney operators and truck drivers, amid growing concerns about the effect of rising diesel prices on transportation costs.

Bernard “Porky” Dorsett, operator of Porky's Rubis Service Station, previously disclosed plans to develop a diesel discount programme for bus and truck operators, hoping increased sales volumes will offset the reduced margins.

The pressure on retailers comes despite the Government's 2024 decision to increase dealer margins from 54 cents to 79 cents per gallon of gas, and diesel margins to 50 cents, following years of lobbying by service station operators.

Dealers have continued to advocate for a percentage-based margin structure instead of fixed per-gallon margins, arguing that their earnings should better reflect changing fuel prices and inflationary operating expenses.

Mr Roker said Bahamians must also recognise this nation does not produce its own gasoline and remains exposed to international market movements beyond the control of local retailers and wholesalers.

He urged consumers to become more conscious of The Bahamas’ dependence on imported fuel, and the potential for further price volatility, encouraging greater conservation and domestic food production.

“What scares the living daylights out of me is where this thing could go to,” he said. “So we as Bahamians got to be totally aware of what we make and what we don't make. For Christ's sake, plant your gardens and be more aware of conservation because when you don't control something, you really don't know where it's going to go.”