A petroleum retailer who operates four stations in New Providence said yesterday an "unconscionable" rent bill issued by Sol Petroleum Bahamas Limited for the Esso service station off the Six-Legged Roundabout coupled with the government's thus far inflexible position on a margin increase request could mean he would have to close two of his stations.

Sol Petroleum issued Paul Hepburn a bill of $48,345 for rent for that particular station at Oakes Field for the month of February (which was due March 15).

That was an increase of $11,200 over the January rent.

"It is a question of whether I will be able to survive the increase," Hepburn told The Nassau Guardian.

"It's questionable. It think it's unrealistic. I think it's unconscionable. I think it's insane to do that, particularly at a time when we are struggling trying to get back on our feet.

"It's hard enough with the margins that we have for them to try to do it with this margin and high costs of everything, high cost of labor; it's just unconscionable."

But Valentino Hanna, general manager of Sol Petroleum (Bahamas), said there is nothing inflated about the rent billed for the Oakes Field station.

He said the company recently made a significant investment in solar for that station and has also taken over the still existing Bahamas Power Company (BPL) bill, which accounts for the increased rent.

"The increase in rent is associated with the investment that we made in solar and the fact that we've taken over the electricity bill," said Hanna when contacted.

"So the increase that we would have given should certainly comprise what the electricity bill actually is from BPL and the factor for the (solar) investment that we've made."

Hanna said that given the solar investment and the BPL bill that Sol took over, it is inaccurate for Hepburn to allege that he should be charged significantly less.

"If I were required to, I could produce an electricity bill for $11,000 plus," he said. "I said that without fear of contradiction. I have it sitting right in front of me."

But Hepburn said it is becoming "very stressful to manage and constantly be inserting my own personal funds to keep the business going".

"I'm hoping for an increase (in the margins) by the government and that would help substantially toward that," he said.

Retailers and wholesalers split an 88 cent add-on to the landed cost of gasoline; that's 54 cents for retailers and 34 cents for wholesalers.

Retailers contend that they cannot continue as is with the 54-cent margin and the high cost of business - including labor costs, energy costs, business license fees and other costs.

Asked what it would mean for his businesses if the government refuses to change the current margin system, which determines how much retailers make, Hepburn said, "I'd have to shut down about two stations, two of the four, and see if I can survive with the remaining two."

Insisting that the rent increase from Sol adds to what amounts to a perfect storm, Hepburn said, "They have a 200-page contract and basically you take it our you get out, and that's the way they negotiate - take it or leave it, and I want you and the Bahamian public to know it is wrong.

"I am a Bahamian. I am deserving of a decent living. I'm deserving of a decent wage with a profit as well."

While Hepburn said he has received no answer to his inquiry to Sol regarding the increase, Hanna said it is unfortunate that he has spoken to the media before having a conversation with company officials.

"Mr. Hepburn has not sat down and availed himself of all of the information that he needs," Hanna said.

"This was quite surprising because Mr. Hepburn has not even had a conversation with us about the communication he was given. He's not taking my calls."

Hanna opined that Hepburn's concerns are "wrapped up with what is going on with the government and the dealers" relating to the margins.

"Our objective in doing what we have done is not to disadvantage Mr. Hepburn in any way," he said.

"Mr. Hepburn has to pay both his rent and he has to pay BPL, so if it's combined in one payment, what is the difference? The net difference is the same.

"The only difference on top of what he would pay between his old rent and the new rent is the factor associated with the investment that we made in the solar, which was significant."

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