The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Petroleum retailers yesterday warned that soaring fuel prices are expected to drive goods and services price increases across The Bahamas, as one asserted “nothing is going to be cheap” with gasoline forecast to climb above $6.50 per gallon.

Peter Roker, owner of Roker’s Gas Station, said gasoline prices are projected to rise by $1.02 per gallon, while diesel is expected to increase by $1.59 per gallon — sharp jumps he said could have a ripple effect throughout the economy.

Current pump prices already range widely across New Providence, with gasoline listed at $5.32 per gallon at Esso, $5.53 at Rubis, $5.77 at Shell, and $5.75 at Shell Marathon AutoServ. Diesel at the latter is priced around $5.45.

“I am afraid. I’m deeply concerned, because we don’t know where this is going,” Mr Roker said, pointing to increases he estimated at roughly 20 percent for gasoline and as much as 30 percent for diesel.

He warned that while motorists may attempt to adjust their personal consumption, industries that depend heavily on diesel - including trucking, construction and heavy equipment - have far less flexibility.

“A dump truck can’t do that. They use diesel, and that’s definitely going to have a very, in my opinion, grave effect,” said Mr Roker. “It’s going to result in higher prices. Almost everything - nothing is going to be cheap.”

He said the scale of the diesel increase is particularly concerning because of its central role in moving goods and supporting economic activity across The Bahamas. A roughly 30 percent jump, he argued, will inevitably be passed through to consumers.

“How can the country survive with a 30 percent fuel increase?” he asked. Mr Roker added that businesses across the supply chain are likely to face mounting pressure as fuel costs climb, forcing difficult decisions on pricing and operations.

“So, truthfully speaking, no one is able to say that they have anything to do with the cost - the Government, the businesses -— they have no control over it,” he said.

Despite those constraints, Mr Roker said both consumers and policymakers must begin preparing for continued volatility in global energy markets, including adopting more conservative consumption habits. “This is now the time to understand being conservative,” he said, encouraging motorists to reduce fuel usage where possible.

Mr Roker also pointed to global supply challenges, noting that some countries are already facing fuel shortages, highlighting the vulnerability of small, import-dependent economies such as The Bahamas.

“We are very fortunate, being a small country,” he said. “We are extremely fortunate… and so now we have circumstances we have no control over.”

Mr Roker suggested that while the Government must maintain its revenue streams, there may be room to ease the burden on consumers through targeted policy adjustments — particularly in how VAT is applied to fuel.

“I think the responsible thing would be to say, let’s pay the VAT on what gas is normally sold at,” he said. “I think they can do that. I think they should do that.” Such a move, Mr Roker argued, could help cushion the immediate impact of sharp price swings, even if only temporarily.

At the same time, Mr Roker acknowledged that fuel dealers themselves are also facing growing pressure as wholesale costs rise faster than fixed margins that cannot adjust.

Against that backdrop, he warned that uncertainty remains the biggest challenge, with the potential for further increases still unclear. “Well, anything could happen,” Mr Roker said. “I hope it doesn’t happen, but make no mistake about it - this is serious.”

Meanwhile, Darvin Russell, the FNM candidate for Centerville, argued that the Government had an opportunity to act ahead of the increase but failed to do so. “The gas is going over $6.50 tonight. You heard me; tonight,” said Mr Russell.

“Three weeks ago, the FNM stood up and warned this government. We saw the conflict in the Middle East pushing oil prices higher around the world.” Mr Russell said the Opposition had proposed a targeted measure to cushion the impact on consumers.

“We called on this government to cap the VAT charge on fuel — simple, targeted,” he said. “It had worked in Barbados during the last global oil spike. The blueprint already existed.”

Mr Russell added: “All Philip Davis had to do was follow it. He did nothing. And now tonight, you’re going to feel it — every trip to the gas station, every delivery driver, every small business owner, every family trying to get the kids to school.”

He warned that higher fuel costs will be felt across all islands. “You’re going to pay the price for the Government’s inaction, whether you live in Nassau, and especially our brothers and sisters in the Family Islands,” Mr Russell said.

Mr Davis previously asserted that comparisons with Barbados were inappropriate, and not ‘apples for apples’, because the petroleum industry in that Caribbean nation is structured differently with more government control.