Members of the Bahamas Propane Gas Retailers Association yesterday refused to back down from a price hike that puts cooking gas at $75 per 100-pound cylinder in New Providence and Grand Bahama, and almost $80 in the Family Islands.
Association member companies – Island Gases, Moss Gas, Central Gas and Bahamas Gas – have ignored Trade Minister Leslie Miller’s threat to reduce their price to the government’s mandated $70 or face a licence suspension and legal action.
Mr. Miller gave the companies a deadline of Monday at 5pm and warned that legal action could result in their businesses being shut down.
But the dealers say they have no intention of changing their prices, citing that government’s increase – up from $65 – does not take into account the increased cost margins and that the new price actually puts suppliers at a disadvantage.
“We are not going to respond to idle threats made by Leslie Miller,” Peter Adderley, the spokesperson for the association told The Bahama Journal. “Exactly a year ago this time he was issuing the same type of threats, accusing us of a breach that does not even exist in law. We will not be deterred by idle threats.”
Mr. Adderley said that the association looks forward to meeting with Prime Minister Perry Christie because its members are satisfied that Mr. Miller either does not understand the facts and figures or has no regard or respect for the hardworking entrepreneurs in the industry.
This latest row between Mr. Miller and the association came to a head last Friday when the minister issued a no-nonsense warning to propane gas distributors to stop selling liquefied petroleum (LP) gas at an unapproved margin.
The local dealers were allowed to sell cooking gas at $70 per 100-pound cylinder, a $5 increase that took effect November 24.
Mr. Miller assured consumers who had already paid the additional $5 to bring their receipts for a refund.
“The retailers are now breaking the law. The retailers have decided that they are going to sell a 100-pound cylinder for $75 per cylinder and that is against the law,” Mr. Miller told The Bahama Journal in a previous interview.
Mr. Adderley said that the government’s price could result in great losses to the retailers, given that insurance, gasoline, salaries and other items related to the business have increased.
Last Christmas, the dealers had refused to sell cooking gas to the public in their push for a $22 price increase, which would have brought cooking gas for $85 for a 100-pound cylinder.
The retailers eventually agreed to a $65 price tag.
In November, the dealers and wholesalers were notified that they had been granted a $5 increase in New Providence and for the Family Islands a 100-pound cylinder was increased to $79.
Mr. Miller said that the increase was only a one time deal because in January the Ministry of Trade and Industry, along with the Ministry of Finance, will restructure the margin on LP gas so it would always be at an affordable price for Bahamians.
Said Mr. Adderley: “We have waited more than eight years for an increase, and waited for a full year for the minister to give us a justifiable response to a request for an increase.
“His subtle increase at this time is not consistent nor transparent, and more than a quick-fix dollar increase, we are asking for a consistent and transparent pricing system in this industry.”
By: Erica Wells, The Bahama Journal
