Butane dealers strike for higher prices
Double check the padlock on your gas tank tonight because suddenly butane is a very scarce commodity. The problem is prices, but don’t tell that to angry consumers who fear a Christmas of cold turkey and half baked fruitcake.
Jacqueline Woods, Reporting
Phones were ringing off the hook today at Belize City gas companies. In the run up to Christmas, homemakers, restaurants, hotels and bakeries were out of butane and they wanted their cylinders filled…only to find out that the supply was shut off.
Gas Retailer
“We have gas, but we will not be selling any until prices are negotiated.”
The shutdown is a decision made by importers and retailers of butane gas. They are demanding an increase of six dollars in the price of a one hundred pound tank. The importers say they made the request to government several months ago and since then all they?ve received is talk. Michael Godoy of Southern Choice Butane and a spokesperson for the Liquid Petroleum Gas Importers Association, says initially government promised to meet the request, but following a meeting on Monday, December fourth agreed only to a four-dollar increase. This increase would not be effective until January, 2001. The importers, who met this morning at the Radisson, say since world fuel prices increased they have been operating at a loss and have no choice but to raise the price.
Michael Godoy, Spokesperson, LPG Importers
“People have overdraft at the banks, we?ve had to ask the people we are importing fuel from to extend the payments because the revenue is not there and the profits are not there. I?ve said earlier that the kinds of monies that have had to be invested in buying new equipment to service this industry has taken quite a toll on the importers too.”
But consumers were caught by surprise with no opportunity to gas up before the strike.
Consumer
“I just know got to learn about that.?
Jacqueline Woods
?Do you have any gas at home??
Consumer
?No and my wife is just half way through cooking. I wanted to know why when I went to Brown?s Butane Gas Service they said no gas and I?ve never seen them out of gas before.”
Michael Godoy
“It’s not being mean to consumers. All the companies here are in business, not in business to lose money. We value our customers, but the point that is very important that we have to focus on here is that we don’t control world prices. If PEMEX their increase price, we have to reflect that in the cost of fuel that we are selling to consumers.”
“What the importers and the retailers are saying that it is not feasible for them to sell fuel at the present prices, so fuel won?t be sold until the prices are increased, so its not a matter of being on strike.”
“Well we are hoping that it won?t have to go that far. We are anticipating that government can obviously see…and it?s not something that was decided on overnight, this is months and months of negotiation with government that has reached this point now. During those negotiations prices have also increased, so the six dollars still does not reflect the kind of increases that has been passed on to us by the exporters.
Jacqueline Woods
?But you all chose this time to stop selling fuel because it?s Christmas season??
Michael Godoy
?No, no.?
Jacqueline Woods
?If you all have been negotiating for months and months why wasn?t done earlier??
Michael Godoy
?Well because this is the time that government had responded to us saying that it?s four dollars we are giving to you, even though in discussions with government it was agreed that six dollars was going to be approved and so that?s why there was not a problem.”
Godoy says if Government does not respond to their request by noon Friday they will have no choice but to shut down business countrywide. Late word is that Belmopan has approved a four dollar increase, effective immediately, but the butane dealers are holding out for six.
