The Tribune

By LYNAIRE MUNNINGS

lmunnings@tribunemedia.net

THE vice president of the Bahamas Petroleum Dealers Association said he has “high hopes” that the government will address the issue of the long-awaited margin increase.

Last week, Vasco Bastian told this newspaper that due to an increase in the minimum wage, which is set to rise from $210 to $260 in the new year, fuel operators will be forced to cut staffing to survive unless the Davis administration grants a margin increase.

With the industry’s gross profit margins largely fixed at a time when a wide variety of expenses are rising, Mr Bastian believes that the industry’s business model must be modernised and switched from fixed price-controlled margins on gasoline.

Yesterday, the gas station operator told this newspaper that he is confident Minister of Economic Affairs Michael Halkitis will rectify the matter, noting that the association has submitted a formal letter regarding issues relating to retailers.

He said: “I am overwhelmed that Mr Halkitis will take the time out of his busy schedule to really, really look at our proposal. I hope and pray that at the end of the exercise, we will come up with something very favourable.

“There have been no discussions per se. We submitted a formal letter to the government a week or two ago. And we’re waiting for a response from the government.”

When asked if fuel retailers have finalised the decision to lay-off staff, he said nothing has been set in stone, but promised that once the matter is resolved there will be no layoffs across the board.

Petroleum dealers earlier this year called for a 50 percent increase in their gasoline retail margin which, if granted, would have raised it by 27 cents per gallon from 54 cents to 81 cents.

However, despite a series of meetings with government officials no change in the margins was granted with the Davis administration concerned about imposing further costs on Bahamians.

Margins for petroleum dealers have not been increased since 2011, when the last Hubert Ingraham-led Free National Movement administration was in office.

However, Mr Bastian credited the Progressive Liberal Party for being the “most” accommodating administration within the last 15 years, while emphasising the importance of the association maintaining a “professional” level of communication with the government.

“We can work in tandem with the government to try and resolve this long issue of having margin increase that we are currently challenged within this industry,” Mr Bastian told this newspaper yesterday.

“We want to always keep it professional with the government and those who represent the government and then us on the other side who represent so many dealers in this country.”

He continued: “The government has been very accommodating. We look forward to more negotiations, not only negotiation, we look forward to having this matter resolved in a very amicable fashion.”