Government could introduce policies to promote the use of renewable energy sources as one of the methods of driving down fuel costs in the country, according to a veteran energy industry executive.
Touting benefits like reduction in both the cost of energy and the negative impact on the environment resultant from the use of sources such as oil products, Chairman of the Petroleum Usage Committee Vincent Coleby said two of the leading alternative sources are solar and wind-generated energy.
He pointed out that solar energy could be used for domestic water heating purposes, which would ultimately help to reduce dependence on more expensive sources of energy, such as oil products.
“Introduction of the alternative energy sources might involve the efforts of both the private and the public sector,” said Mr. Coleby.
“With regard to the solar energy the private sector will definitely be involved in that. There will hopefully be a government policy with regard to the usage of solar energy, not in terms of the government itself managing or operating the use of solar energy, but it will promote usage of it and encourage the private sector to provide it.”
Appointed earlier this year to review all aspects of petroleum usage in the country and the impact of fuel prices on the public, the Petroleum Usage Committee has already submitted several reports to the government.
Within the past two months the Committee has made presentations to the prime minister, the minister of state for finance and the cabinet, Mr. Coleby said.
He pointed out that committee members expect to meet next week to continue the process of reviewing the cost and usage of fuel in The Bahamas, and make recommendations to government on how to lower the price of fuel for the Bahamian public.
In the interim, Mr. Coleby noted, stakeholders will continue to monitor fuel prices closely, as they have already decreased significantly in recent weeks.
Although he said fuel prices are not now as volatile as they have been, the committee chairman acknowledged that it would be difficult to forecast how prices might change in the near to intermediate future.
“What you need to be concerned about is how you position yourself in relation to the threshold or equilibrium price of fuel,” said Mr. Coleby.
He added, “In other words, prices cannot continue to go up forever. At some stage it has to find an equilibrium where prices balance out. Where we want to be is someplace comfortably below that threshold and that is where the Committee will endeavour to position The Bahamas.”
According to Mr. Coleby, the Committee’s ultimate goal is to create a situation where whenever international oil prices fluctuate the cost of fuel in The Bahamas would change accordingly, but always remain a little below the threshold price.
On Wednesday, the price of a gallon of gasoline was $3.62 at Esso service stations, $3.77 at Shell, and $3.77 at Texaco.
Diesel was priced at $3.10 per gallon at Esso retailers, $3.10 at Shell, and $3.06 at Texaco.
President of the Bahamas Petroleum Retailers’ Association, Garner Dawkins, meanwhile, said the recent fall of fuel prices on the international market was not a surprise.
“This is the time of the year that prices, especially for gasoline, generally go down and they tend to stay down through the winter months,” said Mr. Dawkins.
“One of the reasons for this is because the demand in North America is for heating oil, therefore, the demand for gasoline and fuel for vehicles is continuing to stay at a lower rate than during the peak summer driving period.”
According to Mr. Dawkins, prices are not expected to fluctuate drastically, barring any catastrophe, change in the Middle East or disruption in the supply and demand of crude oil on the international market.
By: Darrin Culmer, The Bahama Journal
