The butane strike continues tonight and all across Belize, you can't get butane anywhere. It's a problem that's quickly turning into a crisis as the weekend is upon us. Citing successive increase in acquisition costs, the butane importers have demanded that government approve a $19 increase. This afternoon, government tried to offer a compromise when it announced that it had approved a $10 increase in the controlled price, making a 100 pound cylinder of butane $120 in Belize City. But the butane importers and distributors have rejected that. Jose Mai of Belize Western Energy told 7NEWS that they are willing to compromise at an increase of $17. It's a fairly large divide and today the importers held a press conference to explain that they can't sell at a loss.
Jules Vasquez Reporting,
If you needed butane today, this is what you were greeted by: butane distributors and vendors closed for business. It was the same all across the country, part of a butane strike. Importers and distributors joined forced today to explain to the public why they are closed. Owners and managers of Belmont Butane, Gas Tomza, Belize Western Energy, Belize Gas and Western Gas showed their unified stance. They are holding out for government to approve a $19 increase and until and unless they do, they say it doesn't even make enough sense for them to remain open.
Jose Mai, Belize Western Energy
"We are very sorry and we do apologize to the consumers, to the general public but if we continue operating under these circumstances, we will have
to be absorbing so much cost that it will affect us both financially, operationally, and in the end it will find its way back we will not be able to function."
Roque Reyes, Belize Gas Company Ltd.
"Its hard to say I'll have to close my gates. I cannot continue at this stage. $12 are subsidized to the government. I cannot do it. Maybe if I was a billionaire I would do it for the people but I cannot do it."
Miguel Reyes, Western Gas Company Ltd.
"We've actually reached to a point now where we are losing money and its ridiculous for us to continue losing money."
Jose Mai,
"Over the past months we have held on and held on and just dialoguing with government, not doing anything. But honestly it has reached, as you call it, critical mass. We simply cannot continue. Our margins have been slashed. For months we have been absorbing it but there is only so much we can do. Now we have to turn to government. We have tried to dialogue, we have tried to get them on the table and so far its been unsuccessful."
And for starters they say government could start by taking off the GST - which is a $12 tax on this latest shipment.
Jose Mai,
"One option could be the elimination of GST. If we for example take bread, rice, as another of the group mentioned those items don't pay GST. Shouldn't butane be considered an essential commodity? Don't we all need butane? That is not a luxury. We need that to cook."
In fact the only profiting from the rise in acquisition price is the government because the higher the cost the greater the tax collected.
Jose Mai,
"Government has collected more and more GST over the last six months because of the acquisition cost since GST is tied in the acquisition cost as a percentage."
Manuel Martin, Gas Tomza
"When we talk about taking off taxation from the price, the first thing we hear is 'oh no, we ain't going to touch because if we take it off from here, we are going to have to deal with everybody else.'"
Jose Mai,
"Hypothetically speaking, if GST were to be remove then yes, the difference but be $7."
And their beef with government is bigger than GST. It also speaks to a pricing formula which was scrapped when acquisition costs for butane started to soar.
Jose Mai,
"Please consider that we are asking that the price be hiked by $19, but that the $19 adjustment is as a result of government's unfair and negligent implementation of the established pricing mechanism that has been in place for the last five or seven years. We are simply asking for the government to apply the existing mechanism in a fair manner."
But all that talk of formula's and tax exemption, goes right over the heads of consumers who just need butane. It's essential to almost every household - and it's essential that it be affordable. And because butane has gotten so expensive, households cannot even afford the 100 pound cylinders.
Jose Mai,
"People are buying $20, $30, $15 okay. So when we consider that, we know that the obvious, people have it hard."
Hard times, but it's an essential gas. So while these elephants fight, what is happening is that those who don't have butane and can't cook are demanding service and answers.
Jose Mai,
"Part of that answer lies in the hands on the laps of government. They should be the ones to answer this question, not us."
Jules Vasquez,
So even if Radisson calls and say they have tourists to feed and they have no gas to cook with, you won't supply them?
Jose Mai,
"We cannot Jules because of the position we have taken."
And that position will hold until they get what they're asking to; they say it can't be any other way.
Roque Reyes,
"Not because we want to, we can't afford to so we decided to close as long as the government doesn't give us what we are asking for."
The importance of butane can hardly be under-estimated as it is used in the tourism sector, the transport sector and of course in just about every household. But everyone's in the same boat tonight - and that's just the idea by the strikers - to create a crisis so all-enveloping that it will force government's hand.
