Banks are increasingly reluctant to loosen the purse strings and provide credit to gas stations, resulting in shortages and causing some retailers to fold up shop. Phillip Kemp, the interim president of the Bahamas Petroleum Retailers Association (BPRA), called the situation "ludicrous", saying financial institutions should be offering solutions.

And with the recent margin increase for retailers, he told Guardian Business that stations need time to pay back their debts.

"Banks are very wary of gas stations, unreasonably so, I think, because of our recent margin increase," he said.  "There are at least two stations with no gas right now.  Banks just aren't lending the money, which makes no sense for anybody."

Kemp, who manages an Esso gas station on Carmichael Road, said it costs him $132,000 to fill his 30,000 gallon tank.  He has struggled to find the capital to sell his product, although thus far he has managed better than others.  He told Guardian Business the current glut in financing is a hangover from the deep hole retailers created prior to the margin increase.  He said the help "came a little too late", and banks need to stick around so they can realize the margin increase.

"This is an industry where there isn't a lot of confidence," he added.

"This has been going on for a long time, but it has been getting a lot worse.  The banks aren't offering any solutions.  They can save a lot of these stations by offering greater credit.  If a guy is heavily indebted, the way to pay you back is through more credit.  They need to take advantage of the higher margins."

In October, the BPRA was granted a 10 percent rise in gas margins.  Retailers welcomed the increase, which ended a tense stand-off that nearly ended in a general strike in New Providence. Nevertheless, station operators have insisted there is still a long way to go before the industry is both stable and profitable for everyone involved.

Raymond Claridge, a Texaco retailer, said he is "very satisfied" with the 10 percent increase.
Other stations, however, have much higher rent and still find it difficult to make ends meet.  The bottom line, he added, is overdrafts for most station operators are too high.  During the hard times, operators kept asking for more and the banks kept lending.

"And now, they have the increase, but it's too little for many people.  Somewhere along the line the government has to make the oil and gas companies be more realistic with the retailers," he told Guardian Business.

Claridge said he has been able to keep the credit going because he has other assets to tie into the loans.  Other retailers aren't quite so lucky, he explained. In terms of failing to get more credit from banks, he pointed out the issue is not a lack of business.

"It's profit margins and the banks not providing the credit.  We have to sell the gas if they want to be paid back."

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