ACTING Prime Minister Chester Cooper says it is anticipated that gasoline prices will continue to escalate "for the foreseeable future".

He urged motorists to “conserve” as a means to ease the burden of higher cost.

Yesterday, the price of gas was $7.39 per gallon at Esso stations, $6.98 at Rubis and $6.97 at Shell.

While he told reporters that questions related to gas prices should be fielded to Economic Affairs Minister Michael Halkitis, Mr Cooper noted the steps the Davis administration has taken to assist Bahamians in these inflationary times.

“The meetings were held with him along with the Prime Minister, the Minister for Finance. So, as it relates to consumers, I would simply say to conserve. We anticipate that prices are going to be escalated for the foreseeable future and we simply have to conserve the way we would otherwise,” Mr Cooper told reporters before the weekly Cabinet meeting yesterday.

“The one thing I would add though is our government has put in place significant measures in the budget to reduce the cost of living and we hope that those changes that we’ve made in our policies will trickle to the pockets directly to the Bahamian people. We’re seeing it at the cash register already. We’ve seen the announcements by a major grocery store chain that they are putting in place the changes in causing prices to go down as a result of our change in policy.”

Simon Wilson, the Financial Secretary, told Tribune Business on Sunday that the government’s options were limited in providing the relief sought by petroleum retailers struggling with gross margins of 10 percent or less.

He said it was “not an easy fix” to the industry’s plight after both sides met again late last week to discuss the dealers’ concerns. He added that both sides had agreed to keep talking although no resolution was achieved.

“We agreed to continue to have these discussions,” he disclosed. “I think we gathered more information. We’re discussing it. It’s not an easy, easy, easy. It’s not an easy fix. We’re going to keep on talking. It’s not easy. I think our options are limited.”

Vasco Bastian, the Bahamas Petroleum Dealers Association vice-president, declined to comment on the latest talks when contacted by Tribune Business Sunday.

The two petroleum industry factors within the Government’s direct control, with per gallon gasoline prices having broken through the $7 barrier, are the price-controlled fixed margins imposed on the dealers as well as the sector’s taxation structure.

However, Michael Halkitis, minister of economic affairs, has already ruled out an increase in industry margins on the basis that this will further hurt consumers already struggling with soaring inflation and rising pump prices.

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