• Businesses could close down ‘for day or two’

• No change after 30 months of negotiations

• Bastian: I feel like I’ve been hoodwinked

By FAY SIMMONS 

Tribune Business Reporter

jsimmons@tribunemedia.net

GAS retailers are considering a shutdown after being disappointed that there was no margin increase included in the 2024/25 Budget.

Vasco Bastian, vice president of the Petroleum Retailers Association, said members are growing impatient after 30 months of negotiations over a margin increase with the Davis administration and are ready to close their business for a “day or two” to demonstrate their irritation.

Speaking to Tribune Business yesterday, Mr Bastian said gas retailers are still recovering from the COVID-19 pandemic and find it “extremely difficult” to continue operating under the current rate structure.

He said: “The members were ready to shut down and shut down this country for a day or two and I’m the only one completely opposed to shutting down. It would inconvenience the Bahamian public who are supporting us in this effort and our employees who depend on us. Fifty nine out of sixty members are ready to shut down, for the last 30 months we’ve been to convince them to not strike and shut down, as far as yesterday.

“We are trying to be patient and professional in our negotations, but at this point, the members are calling for my head, they believe I am being too nice to the government. But we’re at a point now that I’m even frustrated. I’m disappointed because I feel that I’ve been hoodwinked. It’s extremely difficult, we’re still trying to recover from COVID.”

Gas retailers have not received a margin increase since the then Ingraham administration granted one 13 years ago.

Unlike virtually all other industries, which are able to increase prices to cover rising operating expenses, the Bahamian petroleum industry operates on price-controlled fixed margins that require government approval before they can be changed.

Dealers say that, especially following the post-COVID cost of living crisis, ever-rising expenses have effectively wiped out the 54-cent and 34-cent margins per gallon of gasoline and diesel sold, driving them into losses and placing some in a position where they are threatening to close their operations. The government, though, has been reluctant to raise the margins for fear it will increase fuel bills for motorists.

Mr Bastian revealed that retailers have reduced their request for a 30-cent increase in petroleum to 25 cents and have “paused” the request for a diesel increase as it would affect boaters, heavy equipment operators and jitney drivers.

He said he is “heartbroken” that negotiations have dragged out so long preventing retailers from making a profit and is ‘saddened’ by the way the Davis administration has responded.

He said: “I’m extremely disappointed with the way we are being handled. I’m totally in support of Bahamian businesses, I’m totally in support of trying to ensure that small, medium sized business like the gas station operators in The Bahamas and other small business in The Bahamas survive, but I’m heartbroken at the way we’ve been handled in the last 30 months.

“Really heartbroken that we as Bahamians with families and bills have not been given an opportunity to make a profit or continue to operate in The Bahamas, in this economy, in this environment. It’s just extremely discouraging and we’re saddened by the way we’ve been treated.”