National

Petrol Dealers Shocked By Govt’s Stance

NASSAU, BAHAMAS – The government’s firm stance on fuel margins for petroleum retailers taking the association by surprise according to their president Raymond Jones.

Published

11 months ago

May 26, 2023

Berthony McDermott

NASSAU, BAHAMAS – The Government’s firm stance on fuel margins for petroleum retailers taking the association by surprise. That’s according to their president Raymond Jones who says time is up, adding the association will do what it has to for their businesses to survive.

A standoff may be looming between the government and The Bahamas Petroleum Retailers Association.

The group is remaining firm in its position, after government maintained its firm stance on fuel margins on Thursday.

Association President Raymond Jones says they will continue to take steps to mitigate rising costs.

On Thursday, Economic Affairs Minister Michael Halkitis said the government is not considering a further increase, despite the associations threats of further action.

It followed retailers briefly stopping the sale of diesel earlier this week.

The association says time is up, with Jones adding they’ve exhausted all avenues to mitigate cost.

Retailers are pushing for a 7.8% increase on the landed cost of fuel which Jones says amounts to an additional $40 cents at the pumps.

Fuel retailers earn a fixed margin of .54 cents for every gallon on gasoline and .34 cents for diesel.

The last increase came back in 2011 under the Ingraham administration, taking the margins from 44 to 54 percent.

Jones says the increase in electricity along with the hike in minimum wage is eating away at their earnings.