By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian petroleum retailers yesterday said they will accept a "phased in" 30 cent per gallon margin increase as they urged the Prime Minister to meet with the sector this week "to put this baby to sleep".

Vasco Bastian, the Bahamas Petroleum Retailers Association's (BPRA) vice-president, told Tribune Business that the margin increase they are seeking "doesn't have to be done all at once" to ease the burden on Bahamian consumers and businesses.

Rather, he indicated that gas station operators would accept a series of phased rises that eventually reach their sought-after 30 cents per gallon of gasoline margin increase target. Mr Bastian's comments came after Michael Halkitis, minister of economic affairs, last Thursday again reiterated the Government's steadfast opposition to granting any margin increase because this would automatically raise fuel costs for Bahamian motorists.

"Ask Mr Halkitis for me if he will ever give an opportunity for us to meet again so that we can phase in the increase," the BPRA vice-president said yesterday. "We don't have to do it all at once. We can phase it in. We're in very serious times, very dire times.

"All of the trade unions got their increase, all of the taxi drivers got their increase. We just need to continue to operate to provide essential services for the entire Bahamas. We're asking the Prime Minister if we can meet with him this week to phase-in an increase. He doesn't have to do it all at once.

"We're sending out our full request to meet with him to resolve our proposal, their counter-offer, and let's put this baby to sleep. We have the utmost confidence in the Prime Minister, support his cause, and ask him to work with young Bahamians providing an essential service. That's all we're asking for," Mr Bastian continued.

"They have helped the unions, the taxi drivers. Help us now. We're Bahamians. Our industry is 100 percent Bahamian-owned. That's all we ask. I plead with the Prime Minister; please help us Mr Prime Minister." Mr Halkitis, though, last week reiterated the Government's oft-repeated stance that it is determined not to grant the dealers' margin increase demands although it is prepared to explore other forms of assistance.

Speaking at the Prime Minister's Office's media briefing, the minister rejected assertions that the Government had taken "no action" to address the dealers' plight. This stems from the fact gas stations have been operating at the same price-controlled fixed margins for the past 12 years, 54 cents per gallon of gasoline and 34 cents for diesel, and these are now no longer sufficient to cover operating costs that continue to rise due to inflation and the cost of living crisis.

Mr Halkitis, pointing out that the Government quietly last year provided gas station operators with $6m in collective relief - $5.5m in cash, and $0.5m in rebates on taxes owed - said it was "beyond wrong" to assert that no help had been given.

"What we are saying to the retailers, and I'll say it one more time.... It's not the intention of the Government to do anything that will lead to a direct increase in the price at the pump for the public," he asserted. "Alright. I saw in the paper yesterday where they wanted a 30 cent increase.

"You know what a 30 cent increase means? That means gas goes up for you by 30 cents [a gallon]. Not to Michael Halkitis. It goes up for 400,000; for 397,000 of us." The minister then sought to direct public attention away from the Government's role to what he termed the petroleum dealers' "onerous" business relationships and terms with their landlords - the three oil majors, Rubis, Esso (Sol Petroleum) and Shell (FOCOL Holdings).

"What we continue to do. Our discussions with them, yes, we understand you have some private business relationships that are onerous to you. You pay a lot of rent to your landlord, your landlord takes some percentage off the top of all your sales. You're in a bad situation. That's why we gave them the rebate," Mr Halkitis said.

"We even asked them: 'When we give you this rebate, can we see a reduction in the price?' Well, that didn't happen for whatever reason. What I'm saying is that it's not correct to say we've done nothing. Our view is we don't want to do anything that increases the price of gas at the pump for you the public, businesses, the bus driver, the fisherman. It's counter-productive.

"So what we continue to do is: Let's talk and see how we can work out the situation. There's [also] this point that continues to be raised. Why doesn't the Government reduce its cut, so to speak. There's even been an accusation that the Government is benefiting from the high price. There's nothing further from the truth, and I answer it this way," he added.

Mr Halkitis said that reducing the taxes and revenues the Government receives from gasoline sales would mean it needs to make up the shortfall elsewhere to continue delivering public services to the Bahamian people. This, he added, could force it into borrowing to make up the difference, which in turn would increase the already-high $11bn-plus national debt that persons are "very concerned about".

The Government receives $1.16 in duty for every gallon sold, plus 10 percent VAT, so the Public Treasury's income does increase when pump prices rise. The petroleum dealers have also not suggested that the Government reduce its revenue take for their benefit.

"It's not in our contemplation to grant a margin increase that would lead to an increase in the price at the pump for the public," Mr Halkitis reiterated. "The price of gas goes up for everybody. Not doing that, as time goes on, things evolve and we see some developments in the market, perhaps they'll be an opportunity to do something that does not lead directly to an increase in prices at the pump.

"We think that's a perfectly reasonable position, and that's our position. We continue to work with them, but to talk about a 30 cent increase. No."