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Sep 9, 2011

Government and Butane Suppliers will meet on price impasse

Jose Mai

The government will meet with the Central American Group of importers during the course of next week to arrive at an amicable solution.  However, GOB reiterates that it will not contemplate any price increase with any individual or grouping until there is full compliance with its regulations. BWEL’s manager disagrees. But how much of an increase does the group of companies want? And can they affect the country’s butane supply?

Via Phone: Jose Mai, the General Manager of BWEL

“When we explained to our distributors that we would not have a choice but to adjust their price and they in turn will not be able to hike their price to the consumers—therefore they will be absorbing this increase in pricing in their profit margin, they decided that they might as well support us. So we have the support of fifty distributors countrywide and I can also tell you that between the three companies and our distributors, we supply about eighty percent of the local market.”

Jose Sanchez

“What’s the current selling price per hundred pound cylinder of butane and what is it that your group wants to move that price to?”

Via Phone: Jose Mai

“The present price is one hundred and twenty-six dollars for the hundred pound cylinder in Belize city. As you may know, the price varies for the different districts due to transportation. What we are seeking is six dollars for the hundred pound which is according to the established formula that the industry has worked with over the last ten years. We’re not asking for anything new; we’re not asking for an additional margin, we are just asking for two things: One; that the formula be applied and the price be adjusted and that it be done now because in the last two and a half months alone, we have lost over three hundred and fifty thousand dollars and that is unsustainable. We presented government with the figures, we showed them all the documentation for this. If you recall earlier this year, there was an issue about scales. Prior to this year, there had been no regulations in the industry in regards to scales. It was established, we have met that. All our company operators countrywide now have their authorized scales inspected by the Bureau of Standards. And so we feel that we are in compliance.”

And though BWEL’s general manager says his company is in compliance, the government disagrees. The GOB release says that the Reyes Group of Companies; importers of LPG from Mexico and Belize Natural Energy remain open to the public. These companies have expressed their willingness to do what is necessary to supply LPG during this festive occasion. In addition, GOB will explore other measures to ensure that the supply of LPG is not interrupted.

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2 Responses for “Government and Butane Suppliers will meet on price impasse”

  1. Bgroovy says:

    Isn’t this same group of @$$holes who were/is ripping us off???? These ………….. got some cojones…….

  2. Sam Wright says:

    What do these people take us for, cunu-munu? They rip us off for years and now they want to raise the price to rip us off some more…I hope Saldivar and Contrares have the ba__s to stand up to these importers. They say that they have complied with the scales requirement but I have never seen them weigh the tanks before they sell me gas……there is no strictness in how they conduct business.

    I hope Saldivar means it this time when he says that he will allow the local dealers to import butane….I understand that the locals have been having trouble in the Departments of Environment….Police.. and..Fire, to get clearance to import. If this is true then Cabinet need to clear that up or the price will never go down as long as the local dealers can’t import.

    Kudos to BNE who started this whole thing. It was they who first sold locally produced butane to the Central American importers at a lower price thinking that the saving would be passed on to us. These scamps made a profit from buying from BNE but never passed on the savings to us. Then they tried to block BNE from selling directly to the public by threatening government with a strike. All these people do is make threats everytime they can’t have their way.

    Kudos also to Jules and Lacelle for their undercover work which revealed again that these crooked businessmen were fleesing the public. They owe us for those years of corrupt business practice and now they want to stick it to us again by raising the price; hell no, let them pay us what they owe us, put in the scales, then talk about price adjustment.

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