NASSAU, BAHAMAS — Declining global oil prices will bring some relief to motorists at the pumps, however Bahamas Petroleum Retailers Association (BPRA) vice-president Vasco Bastian believes the impact won’t be as significant in light of underlying issues affecting retailers.
Oil prices peaked in March and have dropped under $100 per barrel over recession fears and decreased demand.
Bastian said: “It will have an impact and bring prices down a bit but I don’t think it will be as significant as people would expect because there are still some issues that need to be addressed.
“Declining global oil prices will definitely have an impact on us locally but it’s just one part of the equation. The other part is what we have been lobbying for the past several months. If the price of crude oil continues to fall and government make its own adjustment we may really see a significant drop in gas prices.”
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.
On the sidelines of a recent Bahamas Chamber of Commerce and Employers Confederation event, Economic Affairs Minister Michael Halkitis said: “What we are seeing is a reduction globally in the price of oil. These things go in cycles depending on supply and demand. It’s a welcomed relief that we see prices begin to go down.”
Halkitis said that fluctuating oil prices on the global market only underscores the need for this nation to aggressively pursue renewables and reduce its demand for imported fuel.
