By Dennis Dames
The decision to not approve margin increases for petroleum retailers is a prudent and wise one on the part of the prime minister and government of The Bahamas.
I have been in the business for three years working closely with one Mr. Godfrey Clark - dealer. We were operating three Shell service stations: Thompson Boulevard, East Bay Street, and Robinson and Blue Hill Roads.
They were among the lowest volume stations on the Island; yet we were able to survive with profits for the stated period.
The East Bay location was the slowest of the lot, but the shop was able to keep that station afloat.
There are petroleum dealers in New Providence who are making big profits, because they have the volume, and their shops are very profitable. If a dealer is pumping 100,000 gallons of gasoline a month at forty-four cents ($ 0.44) profit a gallon; he makes $44,000.00 dollars – exclusive of the shop earnings.
There are a significant number of service stations on the island that have volume of 100,000 gallons of gasoline a month, and the respective dealers of them are taking home more than $10,000.00 profit monthly.
How much more money is it that they want to take home?
The following stations in New Providence among others are doing more than 100,000 gallons of gasoline a month in my opinion: Shell Saunders Beach, Shell Oakes Field, Shell Harold Road, Texaco West Bay, Esso Wulff Road and Montrose Avenue, Texaco Blue Hill Road and Independence Highway, Texaco Faith Avenue and Fire Trail Road, and all of the On The Run Stations, and Heastie Esso Blue Hill.
I have deliberately left out the diesel and shop sales.
The petroleum dealers in New Providence have no legitimate case for fuel price increase; in fact – they are among the highest paid entrepreneurs in the country.
The island could be saturated with service stations - and that might be the reason why some dealers are not making money; and so they are crying for price increases. That’s not a consumer or political problem; thus - the people should not suffer higher fuel prices for this situation, nor should the government give in to blackmail on the part of petroleum dealers.
Caribbean Blog International
A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
