The Tribune

WE do not need to tell you that the price of gas has been going up, and up – and up.

While consumers have been at the sharp end of much of that increased cost, the people selling the gas are also finding themselves in a difficult situation.

The problem is margins. Gas retailers say they are operating on a margin on the gross revenue of about seven percent.

Minister of Economic Affairs Michael Halkitis has ruled out an increase in that margin, which has been the same since 2011, as consumers are already struggling with high inflation.

Retailers say that seven percent isn’t enough to cope with the costs they have to bear – including taxes, paying staff, and more. Even bank costs are a problem, with credit card fees running up to 18 cents a gallon, according to Bahamas Petroleum Dealers Association president Raymond Jones.

Motorists paying by credit card will be feeling their own sting from that too with the fees they get charged by banks in interest.

Mr Jones said: “The retailers are getting to the point where the cost of purchasing fuel and the overdraft fees are to the point where they can’t afford it, and volumes are down – there may be less operators in the business because they can’t maintain the power bills and everything else to stay open.”

That means less fuel. That means job cuts. That means stations on reduced hours or even shutting down completely.

Meanwhile, in the Family Islands, gas prices are soaring even higher. The owner of a gas station in Cat Island said the price is $8.65 a gallon now. When prices go up so high, what do people do? They avoid using their vehicles as much. Sales drop. Gas stations see income go down. It’s a vicious circle.

So what is to be done? Well, the government has said no to a change in the margins – but one owner suggested a solution that might help a little, doing something with the business licence as it is charged on turnover. Gas stations have high turnover but low profit, so that disproportionately affects the gas retailers. Perhaps some leeway there might help, because the alternative could see cutback – or even some businesses going to the wall.

This is a very specific spike in a sector of the economy because of a global trend – finding some measure of short-term relief until prices start to come back down might just give the retailers the breathing room they need.

COVID jobs

The United States has eliminated the need to take a COVID test before entry – and while this will no doubt be hailed as a boon to our tourism as visitors no longer have to chase around to find a test before the end of their holiday, it is not of benefit to all.

What is good news for one may be bad news for another – and indeed, spare a thought for the workers who have been administering those tests all these months, who now find themselves facing the prospect of being out of work.

Doctors Hospital has made a reported $50m in revenue from testing during the crisis – and the staff there are to be commended for providing the resources we needed during the pandemic. The end of testing will leave a sizeable dent in their finances though – and those at testing sites may well not see contracts renewed, or at other providers made redundant.

In our personal visits to those sites for our own tests, we have found them helpful and professional, and we hope there will be opportunities for them. The government would do well to hold some job fairs for affected workers to help them find placements in similar fields.