The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

GAS stations may become cashless in the near future as they seek to drive greater efficiencies beyond long-running negotiations with the Government over a margin increase, it was revealed yesterday.

Vasco Bastian, the Bahamas Petroleum Dealers Association’s (BPDA) vice-president, told Tribune Business the industry is moving forward with other initiatives as talks over members’ price-controlled fixed margins have “dragged on” for more than 12 months.

“We might be cashless,” he said. “This is the time. We have the Sand Dollar now, and gas stations should become a cashless operation where there is no cash.” Cashless gas stations would follow the growing trend to eliminate, or at least minimise, the amount of cash transactions, which is seen as improving business security and efficiency as well as clamping down on the opportunity for employee theft.

Mr Bastian said: “I will not be a part of an industry where we only focus on a margin increase. We want to promote safety.” Gas stations may not be cashless by year-end 2023, but the Association is “talking” about moving the industry in that direction. “Increasing the fuel margin is just one aspect, and we didn’t want to be labelled as an industry solely focused on money. We have other actionable things we are concerned about,” he added.

Turning to the margin negotiations, Mr Bastian added: “This process has taken longer than we had anticipated, but we are hopeful and we continue to be optimistic with the Government. I’ve always said that this government policy with regard to dealing with us has been so encouraging. This government has been the most accommodating set of men I have ever met in politics in the last 30 years.”

While the Davis administration may have been accommodating, it has not budged on increasing the margins for gas retailers. The last time the sector was granted a rise was in 2011 under the last Ingraham administration, but the current government is reluctant to agree to any rise for fear it will further worsen the cost of living crisis that continues to batter many middle and low income Bahamian families.

The Association has been seeking a 50 percent per gallon margin increase, which if granted would take raise it from the present 54 cents to 81 cents for gasoline. In similar fashion, retail margins per gallon of diesel would rise from 34 cents to 51 cents.

Mr Bastian said: “We continue to dialogue with the Government, and we have been making some inroads, so I continue to be optimistic. Oil prices are coming down, so this might be a good time to do it where the consumers don’t feel any additional pressure.”