NASSAU, BAHAMAS — Bahamian motorists will simply have to “grin and bear” rising fuel costs as global supply and demand as the war in Ukraine continues to inflate global oil prices, the Bahamas Petroleum Dealers Association’s (BPDA) vice-president warned yesterday.
In an interview with Eyewitness News, Vasco Bastian urged the government to come to the table with petroleum dealers as to ensure they remain viable.
“As long as the war in Ukraine is going on gas prices will be going up,” he said.
“It’s a supply and demand issue; it’s just that simple. No one knows when this war will end. I predicted that gas prices would go beyond $6. Bahamians should brace for higher prices. Some countries can make adjustments because they are producers but we import all of our oil. I predict that the retail price of gasoline will go beyond $6. There’s now way to get around that. Motorists will just have to grin and bear it.”
Bastian suggested that the government could look at adjusting its taxes on the country’s fuel imports as a way of easing the burden on motorists in the medium term. Bastian acknowledged that this too could prove complicated as the government is keen on securing all the revenue it can at this time, having already reduced VAT from 12 to 10 percent.
“I want to dispel the myth that dealers are making a killing during this time,” he continued.
“This is devastating to us as well. As prices continue to rise the dealers will feel it. The last time we got an adjustment to our margins was 10 years ago. The margin for gasoline dealers are fixed. No matter high high the cost of fuel rises, the dealers will only make $0.54 and the wholesalers get $0.33 cents. Only the government really makes a profit as fuel prices rise as they get $1.60 per gallon plus VAT.”
He said: “If costs continue to rise, dealers are going to find it challenging to purchase fuel. There is no shortage of fuel on the island but the challenge is going to be the ability of dealers to purchase it. Fuel is a necessary commodity and we need to ensure that consumers are not inconvenienced. To ensure that gas stations remain open, the government needs to sit down and address the issue with the dealers.”
Bastian said that dealers are not looking to bully the government nor be bullied.
“We are in the business of providing an essential commodity and we want to work with the government to find solutions in these tough times,” he added.
