Vincentians may have to pay more for cooking gas

By week’s end, Vincentians will know if there will be an increase in the price of cooking gas.{{more}}

Permanent Secretary in the Ministry of Foreign Affairs, Commerce and Trade Andreas Wickham has indicated that government officials are currently in talks with Rubis West Indies Limited, the suppliers of LPG (Liquefied Petroleum Gas), and it is hoped that a conclusion would be arrived at before the end of the week.

Speaking to SEARCHLIGHT yesterday, July 25, Wickham said that a proposal from the company was received, requesting an increase in prices, since they, Rubis, has been operating at a loss for some time.

“…We have asked them for their financial statements and we are currently examining the proposal which they have sent to us. Hopefully, before the end of the week, we should be able to come up with a final solution to the entire problem.”

“You should understand that these products are price controlled products, so obviously if these prices are going to increase in any way for LPG, it has to be something that is approved by Cabinet.”

Cabinet meets on Wednesdays.

Wickham said that it is his hope that the matter would be resolved soon, so as not to disrupt the supply of the product to the general public.

The impasse has so far caused the supplier to cease its shipment to one of its distributors, SOL EC Limited.

Rubis, in a press statement issued on Friday, July 22, stated that apart from their attempts to have the regulated gas prices adjusted by the government, they have proposed to continue to supply LPG to SOL on a Cost, Insurance and Freight (CIF) basis, and are prepared to resume supplies to SOL immediately.

The company said that they were awaiting an answer from SOL with regard to its suggestion.

That answer came from SOL General Manager Steve Francis, who told SEARCHLIGHT yesterday that the proposal put forward by Rubis was not accepted, because this would shift the costs from Rubis to SOL and it was not financially feasible for SOL.

He said that the solution to the problem was a government adjustment of the price mechanism, and that there was hope that the matter could be resolved so that consumers would not ‘face any hardships.’

“Until then, it simply means we would not be earning income from the sale of LPG. Obviously, it would be a financial blow to us. We are still hopeful that the matter would be resolved soon.”

“If the matter prolongs, then it would have an impact not just for us here at SOL, but also on many businesses… because if they can’t get gas they can’t cook or bake….”

Francis said that his company is currently monitoring the situation, and that it was too soon to predict the outcome, given that they had stopped receiving LPG from Rubis from last Friday.

The General Manager noted that so far, there is no need by SOL to cut staff or any of its corporate activities.

“The matter is still pretty early… for the time being, I don’t see any major decision being made with respect to cutting back… Let’s wait and see.”