NASSAU, BAHAMAS — Petroleum dealers could be forced to lay off staff early in the new year if the government does not adjust their margins on gasoline and diesel, according to Bahamas Petroleum Dealers Association vice President Vasco Bastian.
In an Eyewitness News interview, Bastian noted that petroleum retailers have all year been pushing for an adjustment to their margins and have had formal and informal discussions with the government.
“The government has made some adjustments with us on a small scale in the background to address some of our needs but the main issue has always been and continues to be the margin on gas and the margin on diesel,” said Bastian.
Retailers currently earn a fixed $0.54 per gallon margin on gasoline and $0.34 for diesel — margins that do not change when fuel prices go up.
“The government decided to raise the minimum wage. How do you absorb that in the petroleum industry where the margin is fixed? From that $0.54 cents on gas, we pay our light bill, water bill, and salaries, we buy goods for the store, and order fuel – all from that $0.54 cents. You come and tell us that you are going to go up on certain aspects of our model but you have not dealt with the margin increase,” said Bastian.
Bastian credited the Davis administration with accommodating petroleum retailers.
“The Davis administration has been the most accommodating in my 15-16 years in the industry,” he continued.
“I want the record to reflect that however, the BPRA is not a political organization. We represent the petroleum dealers. We provide an essential commodity. We are investors in this economy and we hire persons,” said Bastian.
Bastian stressed that the dealers need to resolve the issue before the end of this year.
“We have no choice but to reduce our staff and reduce staff complement if we do not resolve this. We are desperate. We want to sit down with the PM, Minister Halkitis, and Mr. Wilson again before the year-end if possible, and put this baby to rest. We are struggling.
“The government controls the amount of money we can make. We cannot survive unless we fix these margins and make them more flexible, converting them from a fixed margin to a percentage so that when prices go up there will still be a level of profitability,” said Bastian.
