Despite no longer having responsibility for the consumer affairs portfolio, Mr Miller took the opportunity to express his concern yesterday during a press conference to address agriculture and marine resources matters.
“The cost of fuel in the Bahamas is exorbitantly high. In the United States right now fuel is below $2 per gallon,” he said. Mr Miller, who has been a long-time advocate of Petrocaribe – a program that is said to provide cheaper oil in the region as a way to counter high crude prices – reiterated that if The Bahamas signed on to the Petrocaribe deal consumers would save money.
He said the Petrocaribe deal would also save the Bahamas Electricity Corporation millions of dollars each year. “Petrocaribe would eliminate the middleman and save the Bahamian consumer $1 per gallon and save BEC … (approximately)$25 million per annum,” said Mr Miller. “In The Bahamas, you have no competition. There is a monopoly between the three groups.”
Petrocaribe is a Caribbean oil alliance with Venezuela to purchase its oil on the condition of preferential payment, launched in June 2005. The payment system allows for nations to buy oil at market value but only a certain amount is needed upfront; the remainder can be paid through a 25-year financing agreement at one per cent interest.
According to the latest gas prices released by the Ministry of Local Government and Consumer Affairs, Texaco’s lead-free gasoline was $4.04 per gallon and diesel at $3.49 per gallon by Monday, September 25. At Shell lead-free gasoline stood at $4.77 and diesel, $3.58. Esso prices per gallon stood at $4.28 for gasoline and $3.60 for diesel.
Crude oil was at $77 a barrel as recently as early August. However, reports indicate that oil stood at $67 per barrel – a $10 reduction.
But despite the decrease in the cost of fuel, consumer affairs officials urged the public to “conserve fuel as best as possible,” as the price of fuel fluctuates due to external factors they cannot control.
Reportedly, when the island’s three major oil companies – Shell, Texaco and Esso – purchase a gallon of gas they receive 33 cents on that gallon and then resell it to their distributors, making an additional 44 cents. This means they get 77 cents on one gallon of gas. The government also charges $1.13 in taxes on that gallon of gas. So when the 77 cents is added to the $1.13 in government taxes, the consumer is paying $1.90 on that gallon of gas before it reaches the pumps.
By: LaShonne Outten, The Nassau Guardian
