Bahamas approves long-awaited margin increase for gas retailers, price hike expected next month

The government of Bahamas has finally given gas retailers a margin increase following which the island will be witnessing a slight increase at the pumps next month. The development is a feat for the retailers who have been agitating for years now.

The gas retailers are reported to be rejoicing after their years of advocating for a margin increase have finally been answered.

On Monday evening at a local talk show, Prime Minister Philip Davis revealed that the government had approved a hike of $0.25 per gallon for gasoline and $0.15 per gallon for diesel.

Bahamas Petroleum Realtors Association officials said that realtors now have more than enough headroom for their operations.

The President of the association called it a 'long road' and publicly thanked the Prime Minister. He said, "They've recognized the issues we've had, as they did in an earlier subvention, and he continued to tell us that we're going to work something out."

"The prices need to come down because he doesn't want to put any unjust burden on the Bahamian public, and we applaud that; we support that," he added.

The President noted that the government and the private sector work together to relieve any type of stress or tension that a private sector industry has. 

"We've been working with the government for the last three years like Mr. President, said Mr. Jones, and this is a happy day. We want to publicly thank the Prime Minister," he further said.

Other members of the association who spearheaded the public relations aspect of this margin increase, calling off the protest that was set for Wednesday, September 18th, when parliamentarians were to return to the House of Assembly, explaining that their hard efforts have finally paid off.

The petroleum dealers of this country, like any other Bahamian business person, cannot work on less than what it takes to make a profit, and that can destabilize this country, said one member while adding, "And when you look at petroleum as being an essential part of our makeup, you never want to do anything to cause any destabilization."

On the other hand, the President of the Bahamas Petroleum Retailers Association, Raymond Jones, asserts that this margin is livable and that many Bahamians will only see a few dollars added to their weekly gas bill and the present cost of fuel today.

He said, "And we look at it from the standpoint of the average span of a customer. So if someone is spending about $20 a week on fuel, it's going to cost them an extra $1 a week. Someone that's spending about $50 a week, maybe $2.25, but a bottle of water."

"But as the Prime Minister indicated, in which our data shows with the projected continued decrease in the price of fuel, a consumer might end up in over a period of a month or two, seeing maybe only a $0.50 or $0.60 increase in the cost. And this small increase that we got sufficient to keep us back on track is actually insignificant in the cost to the motoring public," he highlighted.

According to Jones, they are hoping to have that margin increase come into effect as early as next month.