NASSAU, The Bahamas— The Hon. Leslie Miller, Minister of Trade and Industry, says the 23 cents a gallon increase in the price of gasoline and diesel is likely to negatively impact the Bahamian economy, particularly the tourism and airline industries. Minister Miller announced the price increases recently at a press conference at the Ministry of Trade and Industry, Dockendale House, West Bay Street.
He said the increase in gasoline and diesel prices in The Bahamas resulted from a three cents a gallon increase in price of gasoline in Florida and elsewhere within the United States.
Minister Miller said the projected increase in the price of gasoline in New Providence ranges from 19 cents to 23 cents a gallon, while Freeport Focal Oil proposes a 52 cents a gallon increase. Prior to the increase in New Providence, Shell gasoline was sold at $3.34 a gallon, Texaco at $3.36 a gallon and ESSO $3.38 a gallon.
Minister Miller said diesel prices are also expected to increase and will directly affect Jitney operators and The Bahamas Electricity Cooperation. He said Shell is requesting a 39 cents increase on its diesel prices, moving it up to 2.84 a gallon; ESSO is seeking a 30 cents increase for 2.85 per gallon; while Texaco is requesting a 32 cents increase to up its price to $2.81 per gallon.’ Crude oil prices are reflected in The Bahamas within days whereas in the United States it takes at least a month,’ Minister Miller said.
The Minister said the formula put in place by the Shell, Texaco and Esso needs to be broken as it which allows them to mark up oil prices by 33 cents on every gallon imported into The Bahamas. ‘These Companies controls the gas stations within The Bahamas for the exception of Freeport which Focal controls the gas station. The retailer mark up is 44 cents a gallon. A 77 cents mark up on gasoline prices before you and I go to the gas station is terribly wrong,’ Minister Miller said.
Minister Miller said the mark up on gasoline Florida is three cents per gallon and 14 cents per gallon in Barbados. ‘In other Caribbean countries it is half what we pay here in The Bahamas,’ the Minister added.
He said in every country in this region, with the exception of The Bahamas, there are income taxes, corporate taxes and valued added taxes. ‘So why such a high mark up’,’ he asked. The Minister noted that 80 percent of the oil that comes into The Bahamas comes from Venezuela.
Minister Miller said he headed a team from the Caribbean at a meeting six weeks ago with the Venezuelan Government to push the Petro-Carib initiative, a decision taken by the Government of Venezuela to try and assist countries in the Caribbean, Latin, Southern America region in easing the cost of fuel.’ A meeting is schedule with the Venezuelan oil company during the first week of April to bring into force the Petro-Carib Initiative,’ he said.
Minister Miller also revealed that the government plans to prohibit the importation of wrecked vehicles into the country. The Minister commended Pioneer Shipping’s stance not to transport any more wrecked vehicles into the country.’ The government will soon request all other shipping companies to cease transporting these vehicles,’ he said. Minister Miller said the Customs Department loses between $5 million to $10 million per annum from the importation of wrecked vehicles.
