7 News Belize

LPG Importers On the Offensive
posted (April 8, 2020)

Turning now to other news.

2 Days ago, we told you how the 3 Central American Butane Importers filed for an injunction against the Government in the courtroom of the new Acting Chief Justice, Michelle Arana.

The 3 importers, Gas Tomza Limited, Southern Choice Butane, and Belize Western Energy Limited, say that the government threatened to take action against them for simply wanting to lower the prices of their butane to give Belizeans a small break due to the COVID-19 pandemic. You'll remember how they announced on Friday that they were dropping their prices countrywide from 93 cents per pound and $4.20 per gallon, to 88 cents per pound and $3.99 per gallon.

They say that they were doing it out of goodwill to their customers, but yesterday, the management of all 3 companies received stern letters from from Jose Trejo, the Controller of Supplies at the Belize Bureau of standard.

In those letters, Trejo said, quote, "..By issuance of said release, dated April 1st, 2020 to the general public on reduced prices, and partaking in sale below the regulated price, your company is in flagrant violation of the Supplies Control Regulations." End quote.

Trejo goes on to say that the companies are, quote, "forewarned that this irresponsible and intentional act of defiance towards the governing laws and regulations will not be tolerated. Nobody, corporate or sole proprietor, is above the lawâ€Â¦ Please note that this bold act to disregard the regulations will be addressed to the fullest extent of the law." End quote.

So, they have decided to speak up on this fight, and just before midday today, Audrey Matura, one of their attorneys, held a press briefing to discuss this dispute with the Government.

She told us that her clients are surprised that they are being threatened with penalties for trying to show goodwill to their customers in this time of need. Here's how she explained it:

Audrey Matura - Attorney for Claimants

"Last year, sometime in December, just before Christmas, the companies all gave a reduced price to consumers because the truth is, worldwide the prices for butane are going down. When they did that, the Government threatened them because they had lowered the prices, and they complied. They compiled because the Government passed a Statutory Instrument #57 of 2019, in which they're saying, we don't want to give you all the ability - for controlled prices. And they moved it from controlled prices to fixed prices. We have filed an application for judicial review over the decision the Government made to reduce that decision of theirs into law. That matter is still before the court."

"Our clients made the decision, all the gas companies, made the decision that since world prices are plummeting again, that it was unfair for them during this time of COVID-19 crisis to decide to charge people the usual rate that the government has fixed, knowing very well that that is a form of exploitation. That's not what they're paying. What is happening then is the profit margins are too much and said that as a form of helping in this time of crisis, it would be good that we pass that benefit to the consumer. On the 1st of April, they launched their promotional prices."

"As a result of that, the Belize Bureau of Standards, which is the one that deals with control prices, called Mr. Bautista, threatening him that they can go and take away their inventory. Since then, yesterday, they also sent letters to the other companies threatening them. We gave you all copies of those letters. We are therefore saying that that is unjust. This is the opposite of what you all had. When the COVID-19 crisis really set in here in Belize, what some of the stores were doing was price gouging. These companies, what are they doing? They're saying, look, the same way we know that the world market is lower, it is just right that we transfer these benefits to the consumer."

"We've never seen a government ever penalize anyone for trying to sell things for less to help the consumer. This is the first time we're seeing that. And so, we need you all to know one of the reasons why we believe they're doing that. That reason is that, as you all know, the Government has passed legislation that creates a monopoly, a monopoly that the government is part of it, and is called the National Gas Company. For them, for their projections to work, and for them to make the millions they hope to make on the backs of consumers, it is in the interest of the Government to keep prices high."

"They cannot make the consumer in this country know that the prices of LPG worldwide has [been] reduced, and that the consumers deserve that reduction. That's what the fight [is]. The two elephants are fighting, and you, the consumers, are being trampled. And so, our client has asked that we do this press briefing because they believe that it is their social duty to let the consumer know, and for the consumer to demand that they get the lower prices."

In a late evening release, Jose Trejo, the Controller of Supplies at the Belize Bureau of Standards, sent out a press release defending the actions of his office.

In his statement, he says, quote, "Based on the fact that the matters contained therein are currently live before a court of law, the Government and the Ministry responsible for Supplies Control will refrain from publicly engaging on any of the issues which touch and concern those live claims until the determination of those matters.

Kindly note that the Government of Belize, through the Ministry and by extension the Supplies Control Unit, recognizes the current economic challenges being faced by households and businesses and is prepared to ensure that lower prices are passed on to consumers when circumstances so warrant. As such, the Government of Belize assures that at all times it acts in the best interest of consumers and will continue to monitor and adjust prices in accordance with the laws of Belize." End quote.

Not to be left out of this ripe dispute, the PUP issued a release this evening, saying, quote, " What we absolutely cannot understand is how this government will attack the butane wholesalers â€â€œ simply because these entities have made the decision to slash the price of butane to Belizeans during these times of economic hardshipâ€Â¦. In these times of COVID-19, there is no room for political machinations and manipulation." End quote.

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