The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

THE Prime Minister’s spokesperson has reaffirmed the Government is still trying to reach a “happy medium” with petroleum retailers that does not involve raising gas prices for Bahamians.

Keishla Adderley said the Government is effectively trying to balance the competing demands of motorists and gas station operators in achieving the desired “consensus that will be mutually beneficial” for all parties.

Speaking at the Prime Minister’s Office’s weekly media briefing, she added that the Government remains in negotiations with the Bahamas Petroleum Retailers Association (BPRA) and its members through on-off talks that have lasted almost two years.

“I know that they’re in continued discussions. Talks are pending,” Ms Adderley said. “The Prime Minister is determined, or trying his best, not to raise prices that will create a further burden for members of the public while, at the same time trying to, you know, create a happy medium with gas retailers.

“So the short answer is, talks are ongoing. A meeting is pending, and they’re still trying to come to a consensus that will be mutually beneficial.” Ms Adderley’s comments came after gas station operators earlier this week sent a letter to the Prime Minister pleading for discussions to resume and tackle the “dire straits” caused by fixed gasoline margins that have remained unchanged for 12 years.

The Association, in its February 26, 2024, letter to the Prime Minister, said increases to the 54 cents per gallon of gasoline, and 34 cents per gallon of diesel, margins are “so desperately needed” because it is impossible for them to cover costs that have escalated significantly over the past decade-plus.

“Prime Minister, on behalf of our members, I wish to request an urgent meeting with you to discuss the dire straits that petroleum retailers find themselves. With your leadership, we must come to a final resolution on the margin adjustment,” Mr Raymond Jones BPRA president wrote for the Association.

“Many petroleum retailers are at the point of closing their doors as costs continue to mount against the current margin. These businesses affect the livelihoods of countless Bahamian entrepreneurs and their employees, and a closure of any of these sites has a ripple effect in our economy,” he continued.

“We are Bahamian entrepreneurs and need immediate relief via a margin adjustment which is established by the Government. It has been more than a decade since a margin adjustment was made, clearly not keeping pace with the rising costs.

“Prime Minister, we were told over and repeatedly ‘wait for the price to go down, then the Government will take action’. Last year, 2023, and in 2022, between July and September, a significant price decrease [in global oil costs] was realised, yet despite our appeals for a mere $25 cents per gallon [increase] no action was taken. We are respectfully calling on you to take decisive action with this matter.”

Mr Jones subsequently told Tribune Business that reduced operating hours, with dealers no longer staying open 24/7 in a bid to cut costs, was one possible response if a margin increase - either fixed or a percentage-based mechanism - was not forthcoming.

Speaking after dealers held an “emergency meeting” with the Government yet to respond to their letter, Mr Jones said the Association and its members need to understand what help the Government plans to provide and when so they can budget accordingly for their businesses.

“At the end of the day, the silence is too great. Stay tuned,” Mr Jones told this newspaper. “It’s likely that at some point you will see dealers reduce their hours or do something else. We don’t want to inconvenience the motoring public, but for us to stay in business these are the things we have to do. It’s a double-edged sword because it impacts the public and impacts us.

“After doing what we can to minimise operating costs we need margins that give us cash flow to stay in business.” Asked how long the Association can wait for a reply from the Prime Minister and the Government, Mr Jones added that rising global oil prices and the impending summer months meant retailers needed quick resolution to negotiations that have dragged on for almost two years.

“I don’t think we can wait longer than a week,” he told Tribune Business. “We’re already in March. It’s taken too long. It’s been 12 years since the last increase. We’ve given some suggestions. They made a proposal to us, which we accepted, and then we thought the deal was done. Nothing happened.

“Subsequent to that, the minister [Michael Halkitis] said there would be no increase, which was a shocker because they’d proposed a new mechanism which we’d accepted. It can be done as a percentage of the landed cost.

“We just want a margin that’s reasonable for us to survive to be put in place. The current one is not tenable, won’t work and we won’t survive with it. Whatever means they’re comfortable with, we can agree with that and move on. Too much time has been spent on this.”