Gas and diesel prices are expected to increase today as a result of the government's decision to increase fuel margins.
This will result in a 10 cent per gallon increase in the retail price of gasoline and a 15 cent increase in the retail price of diesel, said a statement from the Ministry of Labour and Social Development.
The statement added that despite the new increases of margins for retailers, gas prices at the pump have decreased recently.
Petroleum retailers had been pushing for an increase of 30 cents per gallon for gasoline and 28 cents for diesel. The petroleum industry operates on fixed margins controlled by the government.
The margin changes apply only to retailers, the statement said, adding that there has been no increase in the fuel margin for retailers since 2002.
Several weeks ago, Prime Minister Hubert Ingraham advised a representative of the Petroleum Retailers Association that the price of gas was already high in The Bahamas and that the government was not willing to impose a further burden on the public.
However, Ingraham at the time assured retailers that the government would revisit their request for an increase in pricing margins when the cost of gasoline and diesel decreases. He also promised the appointment of a commission to look into the issue.
Gas prices have decreased by more than 60 cents per gallon since then.
Oswald Moore, chairman of the association's Margin Relief Committee, said the news of the increase comes as great relief to retailers.
However, he added that it's not what they wanted. "We requested more than that but we must admit that it is a help that will stop us from laying off anymore persons and that would help to stem the tide of negativity that we have been experiencing," Moore told The Nassau Guardian yesterday.
"Our hope is that with the appointment of the commission that we will look into this entire situation and find something that is workable on a long term basis," he said.
"Having to run to government for an increase over and over is not satisfactory or a good way to operate. And even now with the 10 cents we're hoping that as prices drop we'll get at least another five cents on gasoline."
Motorists expressed mixed reaction to the announcement yesterday.
Rudolph Greene said the price of gas is high enough.
"With today's economy, your salary isn't going up but everything else is going up," he said.
Greene added: "Ten cents might not sound like a lot, but at the end of the day it adds up." He acknowledged, however that the increase could have been worse.
Harvey Smith also said he does not think the increase is a good idea. "Gas is too high right now for us," Smith said. "I think it's just too much. It's good for retailers, not for us."
Carnetha Carew, another motorist, took a different view. "I know it's going to be hard on us as motorists but in the long run everyone needs to have a job and if this 10 cents means that someone will have a job then by all means yes. I agree with it 100 percent," Carew said. She said the figure is so miniscule that she probably won't feel it.
Meantime, Moore said retailers appreciate the public's continued understanding.
He added that over the years retailers have had to borrow from various banks to keep their businesses afloat. "This will help to stem that flow and to get a better hold of things and to do a little better than we have been doing," Moore said.
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