By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

PRIME Minister Philip “Brave” Davis announced last night that his administration has approved a margin increase for gas retailers of 25 cents per gallon for gasoline and 15 cents per gallon for diesel.

Mr Davis did not specify when the new rates will take effect but said the impact on the Bahamian people would not be as severe as in the past.

“It is manageable when we look at first of all how our gas prices have declined over the last year and continue to decline, and we expect that gas prices will continue decline through to at least December of this year,” he said during an appearance on ZNS’s new show, “The Rundown with Clint Watson.”

His comment came after gas retailers announced plans to protest at Parliament tomorrow over the government’s failure to address to their requests.

Gas retailers have repeatedly called for a margin increase, saying they can no longer operate under the current fixed-margin regime due to rising costs.

Unlike other industries, where prices can be adjusted to cover increasing expenses, the Bahamian petroleum sector operates under government-controlled price margins that require approval for any changes.

Prime Minister Davis suggested yesterday the government’s delay in implementing the increase was because the timing was not right.

“The retailers were well aware of the challenges that we’re having and that they were having,” Mr Davis added. “I was sympathetic to them. About a year or half ago, we did make an initiative to assist them which we did for which they were grateful, but and we promised to get back to them on this matter, and we finally got a resolve, and the time is now right for us to do what we’re doing, because they will not have the kind of negative impact on the Bahamian people that would have it would have had if we’d done it sooner.”

The last margin increase for petroleum dealers was in 2011 when the Free National Movement (FNM) government led by Hubert Ingraham approved a 10-cent increase per gallon of gasoline, raising it from 44 cents to 54 cents.

A 15-cent increase per gallon of diesel was also approved. Currently, the government collects over $1.60 for every gallon of gasoline sold in The Bahamas.

In June, gas retailers considered a shutdown after being disappointed by the absence of a margin increase in the 2024/25 Budget.

Vasco Bastian, vice president of the Petroleum Retailers Association, said members were growing frustrated after months of negotiations and were ready to close their businesses for a “day or two” to show their displeasure.