THE price of gasoline at $5.52 at the pump yesterday. Photo: Donavan McIntosh/Tribune staff
By KHRISNA RUSSELL
Tribune Chief Reporter
krussell@tribunemedia.net
PUBLIC Works Minister Alfred Sears said the government is concerned about the rise in gasoline prices at the pumps, adding some “extraordinary” measures will have to be considered and taken in response to an expected continued increase in fuel costs.
Over the last two weeks, motorists in New Providence, especially those who frequent Rubis gas stations, have faced a dramatic price hike. In mid-February, the supplier’s price at the pumps was $5.16 per gallon - below its competitors. But as of yesterday, that price stood at $5.52.
While Shell stations did not increase during that time frame, remaining at $5.37, Esso rose by five cents, increasing from $5.19 to $5.24.
It follows speculation The Bahamas could see the cost of fuel rise anywhere between $6 and $8 per gallon.
Rubis Bahamas officials did not respond to an email inquiry from The Tribune up to press time yesterday.
Asked about the matter yesterday, Mr Sears said the Bahamian government was no different from administrations around the world regarding the worrisome cost of fuel.
“Every country in the world, other than the countries which have large deposits of oil and natural gas, is concerned,” Mr Sears said in response to a question from The Tribune. “So, the answer is yes, we are concerned.
“Especially (with) the war going on now with the invasion by Russia into Ukraine. Russia is the second largest supplier of oil so again there will be an impact as we have sanctions being applied by a number of countries on Russia. So, like every country in the world, we will have to take extraordinary measures.
“The government has backstopped BPL in the provision of a hedge strategy which stabilises the price or the rate of electricity notwithstanding the fluctuations in the marketplace.
“The Prime Minister yesterday (Tuesday) made an announcement from Belize that the government will take every measure to ensure that the very challenging external environment and rising price of fuel, that certain safeguards will be put in place so that the most vulnerable in the Bahamian society will not have to suffer any more than we have already suffered.”
He continued: “So, the government is committed. I am part of (the) Cabinet subcommittee dealing with energy and in addition to the Ministry of Finance providing support for the hedge strategy, we’re looking at a number of other options such as moving toward a cleaner form of energy that will also reduce the cost and that is LNG.
“We are also looking at solar and many local as well as international companies have put proposals to the government. We are reviewing and meeting with these various parties. We’ll be establishing a process and will begin to meet with them leading to a contractual relationship with the country.”
He said the government would be making a strong push to decrease the country’s dependency on fossil fuels.
“Well, the government has already committed to achieve 30 percent of renewable energy in the power generation by 2030. That is a very ambitious target but it is a target that we have promised the Bahamian people that we will meet and we’re moving very aggressively.
“I can tell you every ministry, this ministry, the Ministry of Works, the future purchase of vehicles, cars, trucks, bush hogs and so on but we are starting to purchase electric vehicles and we will be installing charge stations in the various compounds of the Ministry of Works so that we can move very aggressively towards a cleaner form of energy rather than the fossil fuel that we use and just reduce our carbon footprint. So, in every way we can.
“We also are encouraging conservation of the consumption of electricity. So, we all have a mandate and I will also use this opportunity to encourage every consumer to conserve in every way that we can because it benefits not only our families but also benefits our country.”
Late last month Bahamian consumers and businesses were warned to brace for gasoline prices to hit $6 per gallon this month after the Ukraine crisis sent oil prices soaring to seven-year highs.
Vasco Bastian, the Bahamas Petroleum Dealers Association’s (BPDA) vice-president, told Tribune Business at the time he was monitoring Russia’s actions towards its western neighbour days ahead of the military conflict - and its potential disruption on world output and supply chains - sent oil prices soaring to almost $100. Yesterday it stood at $110 a barrel.
Mr Bastian, also owner/operator of Esso’s East Street South and Soldier Road gas station, added that “if war breaks out” then oil prices could possibly go up by another 50 percent.
A war began in the following days.
On the heels of this, Foreign Affairs Minister Fred Mitchell predicted an $8 high due to inflation sparked by Russia’s invasion of Ukraine.
Comments
joeblow 2 years, 1 month ago
... why are there price increases on fuel that was in the country and in some cases already in the ground at gas stations, before the issue arose in the Ukraine? This is nothing but a money grab by fuel companies and the government at consumer expense!
Sickened 2 years, 1 month ago
It certainly appears that way. One would speculate that it would take weeks for a sales agreement to be made and then fuel shipped in to the country and then that fuel actually pumped out into cars? Unless of course there are ships full of fuel floating in The Bahamas and you call them up and negotiate a price and then they swing by your dock and unload?
tribanon 2 years, 1 month ago
Sears wants us all to believe the corrupt Davis and Cooper led PLP administration has all kinds of different colour deals coming to the rescue of financially strapped Bahamians, e.g., green deals, blue deals, rainbow deals, blah, blah, blah.
The dire financial predicament many Bahamians find themselves in today is the inevitable outcome of decades of racist politics of the worst kind that duped voters into supporting corrupt elitist politicians whose only interest has been the lining their own pockets and the pockets of their financial-backers with our tax dollars, and by 'selling' the best our country has to offer to foreign interests under corrupt concession laden deals. And it's those same mega mega mega millions of tax dollars stolen from the people by the political ruling class over many decades that should have been wisely spent since 1973 developing and diversifying our economy rather than bankrupting it.
SLOP planted the seeds of socialism which all too quickly sprouted under carefully crafted racist politics into the corrupt and elitist political ruling class that for decades has raped, pillaged and plundered our country, leaving most Bahmians with a downward spiralling standard of living and quality of life. Yes indeed, SLOP's legacy is deeply rooted and about to come home to roost for most Bahamians in a most terrible and vicious way. This is what happens to a nation that does not take care of its people and a people who sit idly by and let the most greedy and evil elements of society take the reins of their destiny. So sad.
JackArawak 2 years, 1 month ago
You are correct Tribanon
Proguing 2 years, 1 month ago
Just remember when you are paying these exorbitant gas prices, this is because of Biden's green energy transition and of “unprecedented sanctions” to punish Putin...
Anybody got those Biden stickers "I did this" to put on the gas pumps?
tribanon 2 years, 1 month ago
Our country's problems are much more deeply rooted than Biden; he's only exacerbating what were already our own self-inflicted woes for supporting our very own most corrupt and elitist ruling class of evil politicians.
John 2 years, 1 month ago
Call it A SLOW NEWS DAY or WEEK! The price of gas fell from $5.00 plus to just over $3.00 a gallon and from $2.00 plus a gallon in the US to 99 cents a gallon and even less for a short period. Yet there was no blaring headlines. Most Bahamians have the small Japanese cars and the gas increases will not affect them by more than $10-$15 a month. And many can compensate for this by reducing their driving or improving their driving habits.
Dawes 2 years, 1 month ago
Thats the cost for driving a car. Now add in the increase in food and anything else that companies will charge due to their increased costs. And then the increase in BPL as well. Hopefully won't be too bad but it could be
bahamianson 2 years, 1 month ago
Measures will be needed? But, are they going to be met?
John 2 years, 1 month ago
Try figure what the average Russian is facing there the Russia currency fell to ONE CENT against the US $. So a bottle of water that was costing $2.00 last week in Russia, now costs $200.00 today! Gas will also be around $200. 00 or $300 a gallon.
Proguing 2 years, 1 month ago
Yep, and additionally they will soon be unemployed due to the sanctions. These sanctions will hurt everyone except Putin who will still be eating caviar everyday at the Kremlin.
newcitizen 2 years, 1 month ago
You, John, are an idiot. You do realize that the Ruble has never been equal to a USD? It has fallen from around 1.4 US cents per Ruble to 0.9 US cents per Ruble. So your $2.00 bottle of water now costs about $3.50 not $200. This is a testament to the failure of education in this country.
John 2 years, 1 month ago
No it is a testament to the US trying to run a war in the press and drum up support against Russia for doing things the United States has done a thousand times over. Like invade sovereign countries, overthrow sitting governments and even assassinated heads of state. I was minded to research what the US media is calling the collapse of the Russian ruble, but the US media was so convincing that it fell from being on par with the US $ to just being worth one US cent, since the war began, I accepted it. So yes, I am an intelligent idiot! Suckered by the US press as has half the world been deceived,over and over again.
ColumbusPillow 2 years, 1 month ago
All of this has happened because of Biden's rapture with the kill fossil fuels lobby resulting in the dominance of Russian oil & gas production.. When will Biden wake up?
Proguing 2 years, 1 month ago
Biden is in panic now with the explosion of the price of oil due to his sanctions. He is now willing to make whatever concessions possible to the Iranians to get a peace treaty signed in the hope that this will bring oil prices down. This will be a highly controversial agreement and most probably the reason for the next war, with the compliments of Biden.
Bobsyeruncle 2 years, 1 month ago
Still blaming Biden, huh ? Let me educate you again - neither Biden nor Trump or any other US President from either party for that matter, has anything to do with Russia invading Ukraine or the price of gas in The Bahamas. But go ahead and keep believing what you think (or would like to think), and keep posting Biden's name as the cause of everything that happens in The Bahamas.
John 2 years, 1 month ago
Really got excited when you said ‘let me educate you.’ But nothing of substance came after that. Get a temperature check and try again.
Proguing 2 years, 1 month ago
Well please tell us why the price of oil is currently surging if you think it is not because of US sanctions? Are the US media and oil analysts also uneducated?
"Oil prices had jumped after the U.S., the European Union and the U.K. over the weekend said they would block some Russian banks from the SWIFT messaging system, a move that makes it more difficult for countries to purchase Russian oil.
“Geopolitical risks will remain high for some time,” Matthew Parry, head of long-term analysis at Energy Aspects, recently told MarketWatch. “Western sanctions are expanding as the conflict widens.” Parry expects the Brent price to average $101 this year.
The U.S. Treasury on Monday said it’s prohibiting any transactions with the Central Bank of the Russian Federation, as well as Russia’s national wealth fund and the Russian Ministry of Finance.
The “hurdles that these sanctions will create for financial payments are likely to exacerbate the recent Russian commodity supply shock, already visible as Western and Chinese traders halting shipments,” said analysts at Goldman Sachs.
The Goldman analysts hiked their one-month Brent price forecast to $115 from $95, arguing there would need to be up to 4 million barrels of demand destruction to offset the loss of Russian exports."
https://www.marketwatch.com/story/oil...">https://www.marketwatch.com/story/oil...
Sickened 2 years, 1 month ago
Think it all out and then start again. And maybe come up with alternative solutions to getting Russia to stop killing innocent people. And two of the options cannot include going to war with Russia or letting the people of Ukraine get slaughtered.
Bobsyeruncle 2 years, 1 month ago
Oil is traded on the futures market so most of it is bought several months in advance. The price of oil was ramping up well before US sanctions were introduced, but not before the build up of Russian troops on the Ukraine border.
To be honest the price of oil is effected by many different things that are probably too complex for any of us mere mortals on here to understand. The OPEC nations have a large say in it as well. Go back to 2008 when oil prices hit nearly $170 and then suddenly dropped to below $50. Some say it was market manipulation by OPEC (supply & demand) others say differently. The price of oil between 2007 - 2014 probably averaged around $120 a barrel.
tribanon 2 years, 1 month ago
There would have been no Putin invasion of the Ukraine had Biden as Commander and Chief of the U.S. armed forces not fooked up the U.S. surrender to the Taliban and so hastily exited Afghanistan. And just think, Biden made no mention in his recent State of the Union address about the 13 U.S. soldiers who lost their lives at Kabul airport as a result of his great desire to have the U.S. expedite its surrender and withdrawal. Taiwan must now be a very juicy looking plum in the eyes of Xi Jinping.
newcitizen 2 years, 1 month ago
Why are you shouting about US politics in the Tribune's comment section? Go to the US and complain to them.
Proguing 2 years, 1 month ago
First I am not “shouting”, I am giving an analysis of the current oil crisis which affects the Bahamas. As this crisis affects our living standard and economy why should I not comment in the Tribune? Are you against freedom of speech? Nobody is forcing you to read the comment section.
newcitizen 2 years, 1 month ago
Oh please tell me more of your crack pot theories. They must be so well researched and from such and educated person.
Don't worry no one is stepping on your freedom to let us all know that you are, in fact, and idiot.
Proguing 2 years, 1 month ago
Somehow I am not surprised that you are incapable of having a discussion without resorting to insults. Just so typical of people who have no valid arguments to put forward.
ohdrap4 2 years, 1 month ago
Covid is responsible for this state of affairs. Covid normalized the ad hominem. Started earlier with Hillary Clinton and the "deplorables".
The idgets in social media even said to send the unvaccinated fringe extremists to the front line.
Schemer18 2 years, 1 month ago
Bahamian people falls for anything that is not legitimate. How could you pay on a new rate of fuel that isn't in the Bahamas as yet?
These people in the Bahamas is so corrupt.
They know it is not time to go up on that gas, but they are using the war in the Ukraine to pawn Bahamians & the consumers are sadly falling for it.
John 2 years, 1 month ago
Hmm.. so maybe that explains why gas in the US has gone up 12 cents in two days and even more since there were even talks of a war/invasion. Take the dunce cap.
GodSpeed 2 years, 1 month ago
The United States could produce enough Oil to flood the market and bring prices down but because of the idiotic Democrats and Biden who are in charge of that country everyone will suffer.
John 2 years, 1 month ago
So despite all the sanctions, the US is still purchasing over 210,000 barrels of Russian oil PER DAY! So whilst the US is telling the rest of the world to avoid Russia and boycott Russian products, what is the US itself doing? Leading by example, of course. Great going Joe Biden n Pamela!
John 2 years, 1 month ago
Whilst the US may have enough oil to flood the market, it is not as simple as doing just that. The gulf states have tried to remain neutral in the Russian conflict. Many like the UAE are tradin partners with both Russia and tge Ukraine. And if it was to appear that the US was gaining an unfair advantage from the Russian conflict, they may be forced to respond. And if they increase production of oil and flood the market, oil prices can sink below $30 per barrel almost overnight. The Arabs have nothing to lose with low oil prices but it will definitely make the sanctions against Russia less effective.
Upvote0
TalRussell 2 years, 1 month ago
Lighten up when filling up at pump with.$5.52 gallon petrol which is still bargain at pumps to the per gallon price some world's Drivers pay, even before Russia's Putin's war.
Mr Pintard asks, *Why did the Prime Minister allow the Minister of Finance to overrule the decision by the board and executive of BPL that the hedging program be continued?"...Think Pintard must've meant for de PM to ask himself being de Prime Minister is de Minister of Finance, ― Yes?
SP 2 years, 1 month ago
Mr. Sears is of the opinion that Bahamians are totally stupid!
What position is the Bahamas in regionally relating to renewable energy? How many DECADES have we the people, the IDB, and others, been pushing, begging, reasoning, and pleading, with the FNM & PLP to get serious with renewable energy?
WHY?
Thousands of residents should have been selling power back to the grid!
As usual, we are in a mess because of no other reason than "PLP & FNM failed leadership"!
John 2 years, 1 month ago
The goal since 1991 was to bring bf the average price of gas worldwide to $15 a gallon. To control pollution, to control mobility of the lower and middle class and to control traffic congestion, among other things. But solar energy and other renewable sources delayed that prospect. Now the car car companies are turning to electric power. Less pollution and more efficiently
John 2 years, 1 month ago
And if you think the war is about Putin, watch when Biden starts allowing refugees into the United States. Strictly White Folks ma bey. No Indians, no Blacks, no Africans . Ok then!
John 2 years, 1 month ago
And didn’t the same thing happen with Afghans, and guess why?
Proguing 2 years, 1 month ago
This is already the case in Europe where black refugees are prohibited to enter the EU from Ukraine:
"The appeal follows the intervention of the Nigerian and Jamaican Foreign Ministries last weekend to provide assistance to their citizens who were prevented from boarding trains while white women, children, men and even pets were allowed to leave Ukraine.
Harrowing video evidence has shown some Black and Brown refugees being subjected to violence as well as segregation.
South Asian refugees, Latina students and Sikhs have also been denied the chance to escape with priority given to white Ukrainians.
Nigerian president Muhammadu Buhari said earlier this week: “All who flee a conflict situation have the same right to safe passage under UN convention and the colour of their passport or their skin should make no difference.
“From video evidence, first-hand reports and from those in contact with Nigerian consular officials, there have been unfortunate reports of Ukrainian police and security personnel refusing to allow Nigerians to board buses and trains heading towards the Ukraine-Poland border.”
https://www.mirror.co.uk/news/world-n...">https://www.mirror.co.uk/news/world-n...
killemwitdakno 2 years, 1 month ago
Try buying from LIMA Guyana and refer a friend.
Maximilianotto 2 years, 1 month ago
If the government is or isn’t concerned is irrelevant. Price is price market is market. Talk and interviews will not have any influence. So what? Consumers will pay and drive less. Period.
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