With all the Chetumal street craziness dominating the headlines - we haven't been keeping you updated on the situation with Butane. As we had reported, June first was the deadline for implementation of the new law requiring scales. A number of companies are still non-compliant, and some haven't even put in their orders for a scale.
But, almost as if on cue, the butane importers called government to the table for emergency meetings. Guess what they want? An increase in prices. And it's not just a modest increase, we're talking fourteen dollars per hundred pound cylinder - which would be crippling to consumers.
Government refused, and offered a compromise of eight dollars which was rejected by the importers. And so today they were expected to go on strike - and that was the plan up until yesterday evening, but it seems it was called off, and butane was delivered as normal today.
But government isn't taking any chances, it called in the small retailers and producer BNE to an emergency meeting in Belize City today to discuss contingencies if the big importers should choose to go on strike. According to Minister John Saldivar, they have set the groundwork to ensure that - in the event of a strike - there is as little disruption as possible to the country's butane supply:..
Hon. John Saldivar
"The meeting for the meeting was that at the conclusion of a meeting yesterday with the importers - we were not able to reach any agreement on the price basically and so they inform us that they would be striking today and not be providing butane to the consumers."
Jules Vasquez
"They haven't strike?"
Hon. John Saldivar
"Up to this point it doesn't appear that they have. From as early as a few minutes after the meeting yesterday it became apparent that there are some members of the group that were not willing to go all out on a strike and so I think they still have not been able to come to an agreement among themselves."
Jules Vasquez
"How much of an increase are they asking for and why is the government dis-incline to grant them?"
Hon. John Saldivar
"Well they are asking for $14.00 which is the amount by which the acquisition price of butane has gone up since the last increase. So it certainly is justifiable in terms of the $14.00 but we felt that in the current atmosphere with respect to the image of the industry and certainly in terms of at least trying to phase in the increase we thought that we would agree to an increase of $8.00 this month and then a further increase of $6.00 and they didn't find that acceptable."
Jules Vasquez
"If I could use a "Finneganism" - these people must have more nerves that 10 rotten teeth to ask for a $14.00 increase they have been expose systematically defrauding consumers over what has to be a long period of time."
Hon. John Saldivar
"In fairness to the industry Jules it is not as if the practice has been expose is prevalent with all the companies - there are some companies in my opinion that have not been certainly as "egregious" as some of the other companies but the entire industry now has a black eye and indeed because of that in that atmosphere it is difficult to impose such a huge increase and that is government's position."
Jules Vasquez
"Are you prepared to license other importers? As we know one group plus another family has a monopoly on importation."
Hon. John Saldivar
"That is one of the things that came up this morning in the meeting with the retailers. There are of the opinion that there is some licensing requirement which there is none."
Jules Vasquez
"So anyone can import butane?"
Hon. John Saldivar
"Anyone can import butane. There is no permit and no licensing required - as long as your depot meets the standard and is approve by Environment, Fire and the other appropriate bodies you can import butane."
No price increases have been granted for months since our butane scam exposé and Saldivar seems to concede that with a fourteen dollar increase in acquisition cost, things have reached a tipping point where something has to give. But, our knowledge of the workings of the industry suggest that the price is based upon importation of a high grade blended Liquid Petroleum Gas, when we know - and have established by testing that there are companies importing 100% propane - which is far cheaper than mixed LPG. Additionally many of the importers are bringing in LPG from their regional headquarters, suggesting a less than arm's length price quote.
And while those are issues - the most important one is what we've been pushing for months: where are the scales which should protect you the consumer? Well the majority of large butane suppliers do have scales. We have been unable to determine from the Bureau of Standards just how many are in compliance and how many in violation because that office has been busy getting ready for enforcement.
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That's because the new law went into effect on June first, so any person or company not selling butane without an approved, sealed scale is breaking the law.
Today Saldivar told us summonses are being written up:
Hon. John Saldivar
"The law will be enforced as of the 1st of June."
Jules Vasquez
"Well I know of some who are no compliance and some who haven't even applied. Summonses are being prepared?"
Hon. John Saldivar
"Yes, as we speak summonses are being prepared for these companies and we are going to start first with the ones who didn't even bother to apply and then we are going to deal with those who aren't fully complaint."
We've been trying to get comment from the Bureau of Standards all week on just what the status of compliance and enforcement is - but to no avail. We'll try again tomorrow….
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