NASSAU, BAHAMAS — The government is nearing a solution that could bring some relief to local petroleum dealers, Economic Affairs Minister Senator Michael Halkitis said yesterday.
He provided an update on government efforts on the sidelines of a meeting of the Rotary Club of West Nassau.
Halkitis said: “We are in some discussions with them. We are very near some solution where we want to bring them some relief in their operations.
“We are also looking at the whole pricing sort of program because we intend as well to sit down with the wholesalers and those who bring in the bulk fuel, including looking at ways to reduce the shipping cost because that has really accelerated and contributes to the landing cost of a lot of goods including fuel.
With motorists already paying higher prices at the pumps, Halktiis said it is very difficult to contemplate an increase in the margins retailers make on fuel, adding that thankfully fuel prices are beginning to decline.
Petroleum retailers have asked the government to look at their fuel margins and have met with the government on several occasions in recent months, although no definitive outcome has resulted from those discussions. 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. Operators have stressed that their margins are too low for them to remain viable.
The war between Russia and Ukraine has resulted in the cost of fuel rising significantly globally. A recent Inter-American Development Bank (IDB) study noted that The Bahamas – based on 2019 figures – is the largest importer in the Latin American and Caribbean region of Russian gas and oil.
