G.O.B./Fuel dealers sign new price formula
It?s been a point of negotiation for almost a decade, but this week, the Government of Belize and the Belize Fuel Dealers Association have finally come to agree on a new price formula for petroleum products. The highlight of the contract is a four year promise of a fixed rate of return, in the form of a percentage of the dealers? inventory investment. According to G.O.B.?s point man on this issue, Minister of Works, Jose Coye, this latest effort is an attempt to bring some stability to a very dynamic industry.
Jose Coye, Minister of Works
?About a week ago now, the dealers and myself representing the Government has come to a decision that, that now rate have return and their investment will be fixed as a percentage. The percentage of course, is ranging from nine point five six to ten point six four from premium to diesel. And that percentage is more or less bringing them back to where they may have been years ago before the prices begin to increase. And by doing that now, we have agreed that price now, that percentage return is fixed for four years. So there is no need now for when there are changes in prices; whether prices go up or prices go down. There is no need now for the dealers and Government to be haggling what should be their share; that is now fixed as a percentage.?
Janelle Chanona
?What would be the benefit, if any to consumers??
Jose Coye
?This one, I would say that the benefit is not a direct benefit in the sense of any clear increase or reduction at the pump price. It?s not likely to have any much impact in that sense. But what it does have for consumers generally and industrialists, commercial users of fuel is that now it?s predictable. It?s no longer left to whims and fancies and haggling and subjectivity; it?s all fixed now. This is the percentage you will get and your investment in your inventory. If the price comes down, yes in actual sense it comes down, if it goes up actual sense it goes up, but percentage is fixed.?
?The Government certainly continues, I must admit to be getting the larger portion of the pump price and that has been so for many years, from days in customs. But what the Government is doing and has been doing a bit through the revenue of the placement treaty to try to sort of dampen that increase at the pump and all this being taking into an account in this negotiation to come to this percentage.?
Signing the new price formula agreement was Norberto Rancharan and Sergio Chuc on behalf of the Belize Fuel Dealers Association and Financial Secretary Hugh McSweaney for the Government of Belize.
