After enduring what they have called a pricing challenge for more than a year, some liquid propane gas (LPG) distributors are hopeful that an upcoming meeting with Trade and Industry Minister Leslie Miller will bring favorable news.
Minister Miller on Tuesday confirmed that the meeting is scheduled to take place within the next 10 days with members of the Bahamas Propane Gas Retailers Association, an organization comprising four local propane gas companies, namely Island Gas, Moss Gas, Central Gas and Bahamas Gas.
“It was last December that the minister made the very same promise to us – that he would meet with us early in the new year to get some clarity, consistency and sincerity on the pricing scheme for propane gas retailers,” said association spokesperson, Peter Adderley.
“We continue to say that this is an industry that has not seen an increase in over 10 years on $60, $70 and $75 items that is only bought maybe four times a year; an industry that employs hundreds of hard-working Bahamians, one that contributes over a million dollars to the Public Treasury.”
He claimed that the government has disrespected the dealers.
“It is our hope that the minister lives up to his promise this time around,” Mr. Adderley said.
“We hope that rather than talking and running around the country with idle threats and playing on the emotions of citizens, he would execute something that is in fact transparent and consistent.”
The government and the association have been locking horns over the price increase of a 100-pound cylinder of cooking gas.
After apparently simmering for several months, the issue again built steam this past November following a public notice in one of the news dailies that announced an increase in the price of a 100-pound cylinder of cooking gas from $65 to $70.
But members of the association insist that the new price structure is not enough to sustain their businesses and instead have continued to sell at $75, despite Minister Miller’s warning that their businesses could be shut down.
“We will continue to sell at $75 because it is well within the law,” Mr. Adderley said.
“A year ago we were painted in the media as persons that were not abiding by the law. We have now come from breaking the law to circumventing the law and I don’t know how much longer the country must endure this type of behavior from a cabinet minister. You can’t give a price increase to retailers if you give one to suppliers as well. And so we are looking forward to putting this matter to rest once and for all.”
Despite slamming the minister, Mr. Adderley said he believes his heart is in the right place.
“He wants to do what’s best, but he has to show some more respect,” he said.
“These are Bahamian entrepreneurs who have sacrificed their lives to operate these businesses at a time when all of the relevant items have increased – insurance, the product itself, etc.”
Minister Miller said he has commissioned a full review of the LPG industry, which will not only look at the existing margins of the wholesalers and retailers, but also the safety, consumption and distribution of the products both in New Providence and the Family Islands.
On Tuesday, he expressed optimism that LPG retailers would be happy with the outcome of a new arrangement.
“This would mean that once the prices they are getting now go downwards, their prices would be decreased accordingly,” he explained.
“And in my opinion, that’s not going to be in their best interest as it was in the past, but if that’s what they want, that’s what they will get.”
Meantime, at least one propane gas dealer is benefiting from the ongoing price dispute.
According to Lester Thompson, a ramp assistant at the Caribbean Gas, the company is seeing big sales because it is selling a 100-pound cylinder of cooking gas for $63.
He said the secret simply lies in cutting out the middleman.
“We import our own gas. We have our own terminal down at Clifton Pier. So we don’t have to carry up our prices high like the rest of those who go through dealers,” Mr. Thompson explained.
“In fact, sales were pretty big this Christmas. We sold over 400 to 500 100-pound cylinders.”
By: Macushla N. Pinder, The Bahama Journal
