By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Price Control Commission yesterday gave hard-pressed Bahamian consumers an early Christmas present by lowering the maximum retail price for 100 pound liquefied propane gas (LPG) cylinders by up to 16.3 per cent.

E J Bowe, the Commission’s chairman, told Tribune Business that it would now assess LPG (cooking gas) prices on at least an annual basis, acknowledging that consumers had waited “too long” for a decrease.

He confirmed that yesterday’s announcement was designed to align Bahamian LPG prices, which are price-controlled, with the rapid decline in global costs.

And Mr Bowe also revealed that it was the “LPG dealers themselves” who had called for price cuts that could be passed on to Bahamian consumers, with the industry meeting with the Government “some time ago”.

“The Commission had put a framework to the Cabinet a few months ago,” Mr Bowe told Tribune Business, adding that its recommendations were approved only recently.

“Over the past years, the price of fuel was falling and falling, and the dealers themselves had approached the Price Commission some time ago to say there was room to make cuts to the consumer. What they were making was pretty high, and they could have done something about it.”

Shane Gibson, who has ministerial responsibility for price control, told Tribune Business back in February that the Government was “definitely considering” cuts to LPG prices. And Mr Bowe said the Price Control Commission was also developing recommendations to go to the Government back then.

At that point, there had been a 67 per cent fall in spot LPG prices on the world and US markets. Based on the Mont Belvieu index, LPG per gallon prices had fallen from $1.695 on February 10 last year to $0.56 per gallon at the same time in 2015.

The recommended cuts have thus taken more than eight months to bear fruit, with the Value-Added Tax (VAT) inclusive price for a 100 pound LPG cylinder on New Providence and Grand Bahama now dropping by 16.3 per cent - from $107.5 to $90.

That is a $17.5 savings, and on the Family Islands the price is being cut from $118.25 to $100 - a drop of 15.4 per cent.

“These are big savings for the consumers, and these reductions couldn’t have come at a better time,” Mr Bowe told Tribune Business.

“The holidays are right around the corner, when our people do a lot of cooking and baking. I’m sure they will appreciate it.”

Mr Bowe said that to ensure Bahamian LPG prices were better aligned with those on the world market, the Price Control Commission would review them more frequently.

While they were unlikely to be scrutinised, and altered, as regularly as auto gasoline and diesel prices, Mr Bowe said the intention was to ensure Bahamian consumers did not have to wait 10-15 years for a much-needed reduction.

“What we plan to do going forward is have a review every year, rather than every 10-15 years, to have a look at the prices,” Mr Bowe told Tribune Business.

“We will certainly look at it at least once a year. It will be similar to the gas and diesel. That is done on a regular basis, and the LPG gas will not be done as frequently as that.”

Mr Bowe said the LPG dealers’ only concern with the reduction had been the potential impact on their margins.

“We believe we were fair to the dealers and the consumers,” he added. “We struck the right balance.”

The wholesale LPG price for a 100 pound cylinder drops to $60 in New Providence and Grand Bahama, and $70 on the Family Islands.

By the gallon, LPG retail prices are $3.81 in New Providence and Grand Bahama, and $4.24 in the Family Islands.

The supplier/wholesale prices are $2.52 per gallon on New Providence and Grand Bahama, and $2.97 per gallon in the Family Islands.