The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Rising fuel costs are putting "immense pressure" on businesses within the transportation sector, with one local operator describing it as a "major concern".

"Next to staff, fuel is your biggest cost. When fuel costs start to go up you have to pay attention," said Sky Bahamas chief executive, Captain Randy Butler, pictured. "It's a major concern for us, and I'm sure it's a major concern for every business in the transportation sector.

"We have to pay attention to this; it's another challenge that businesses have to face. You can't simply absorb it, we have to pass it on, and so the consumers are going to feel it. We will keep watching to see how much it will increase."

Crude oil prices have risen as high as $80 per barrel within the past few months, with the cost of fuel at the pump locally crossing the $5 mark. US sanctions on Iran and Venezuela have sparked rising fuel cost fears.

According to one executive at a well-known ground transportation company, rising fuel costs have placed significant pressure on their business. They told Tribune Business: "Rising fuel costs over the past few months have put immense pressure on us. We are trying to mitigate it as much as possible.

"We've definitely noticed the increase. That, along with other proposed fees by the Government, are leading more and more into uncertain territory."

The Central Bank of The Bahamas' monthly economic and financial developments report for August 2018 noted that inflation rates quickened for transport, health, housing, water, gas and electricity.

It added that on the global market, crude oil prices increased in August by 4.3 percent to $77.42 per barrel, despite a 278,000 barrels per day increase in average production by the Organization of Petroleum Exporting Countries (OPEC) to 32.6 million barrels per day.