Minister Miller, who recently returned from a three-day Task Force meeting on Regional Energy Policy in St. Lucia, made the disclosure on Monday.
Speaking with reporters from his West Bay Street office, the Minister pointed out that The Bahamas imports over 150 million gallons of fuel per annum, accruing a staggering fuel bill exceeding $250 million.
“During a presentation Friday, I told the three oil companies – Shell, Esso and Texaco – that our oil importers enjoy a 33 cents mark up on each gallon and distributors a 44 cents increase,” he said. “And they were shocked. Countries much smaller than ours with [a smaller] population do not allow the markups we allow in The Bahamas. These people were flabbergasted and only could ask ‘why we would do such a thing. You are being ripped off all along the economic chain’,” Mr. Miller said.
He has pointed to plans to establish a local Energy Corporation which will be responsible for lifting the fuel from the ports – whether Curacao, Mexico or Trinidad & Tobago – to The Bahamas, so that the country’s motoring public could realize some savings on fuel costs.
“If we are allowed to do what we need to do for Bahamians, gasoline at the pumps would be no more than $2.65 come May, and we have put the oil companies on notice that we intend to do just that,” he said. “Every other country has had to do this to enable them to pass on savings to their people, and this is what we intend to do.”
Gas prices are currently pegged at $2.94 at Esso services stations; $3.04 at Shell stations; and $3.03 at Texaco.
The Minister added, however, that the government’s motive is not to phase out the various oil companies, as they would still receive the same markups.
He said the government is simply seeking to eliminate the middle companies which accrue “all the profits for themselves offshore and have no relations with The Bahamas.”
Minister Miller said: “The government will like to work with the oil companies, but it cannot stand by and watch Bahamians be taken advantage of daily and simply do nothing. Our people are catching eternal hell on the price of fuel.”
Establishing a national Energy Corporation would complement the government’s plan to cash in on a commitment made by Trinidad & Tobago officials last year during the CARICOM Heads of Government meeting to slash prices on petroleum chemicals.
The opportunity comes as a direct result of an agreement signed several years ago between the Caribbean community and the government of the Republic of Venezuela on trade investment.
Under the Caracas accord, Venezuela has agreed to give preferential prices to CARICOM on crude oil, while Trinidad & Tobago, having both a crude and processing plant, has agreed to process the oil into its finer products.
If agreed, this arrangement would also reduce fuel costs in the country, a development Minister Miller feels confident about coming out of last week’s meeting, which he has indicated went “very, very well.”
Representatives from Jamaica, Grenada, Guyana, Barbados, Suriname, Trinidad & Tobago and St. Lucia also attended that meeting along with the OECS and CARICOM Secretariats.
“We have seen the light now, and we have gotten assistance from our Caribbean counterparts,” the Minister said.
“Trinidad has assisted us tremendously in showing us how the market workS,” he said. “And so very shortly we are going to be presenting the paper to Cabinet to see to it that our fuel prices are drastically reduced to enable Bahamians to see some savings in their gas bills.”
Such a development, he said, would further drive down the cost of electricity bills, which saw a reduction in its charges last October.
Minister Miller also revealed that The Bahamas is also “fully on board” in its attempts to reap benefits offered by the Mexican accord, particularly considering the relatively short distance between the countries.
The Minister pointed out that Jamaica, Barbados, Guyana and other small countries presently enjoy benefits offered by both agreements.
Minister Miller is expected to discuss such arrangements with the Mexican government early next month.
“This has to be done because it is unfair what is happening in this country to the driving public…it’s almost criminal,” he said. “And this is something my counterparts agree with wholeheartedly. They would not allow it to happen in their country, so I don’t see why we should allow it to happen here for so many years.”
Mr. Miller further noted that while it is hoped that the oil companies will work closely with his ministry, those who decide not to would not deter the plan.
“We’ll just do what we have to do to get it done, and we shall see, he said. “It’s not going to be an easy road mind you – we’re talking about dollars and cents – but it’s an issue I believe Bahamians are going to back fully and we intend to proceed without haste.”
Macushla N. Pinder, The Bahama Journal
