So, if you’re keeping count, you could chalk up the LPG price decrease
as a small victory for these Central American LPG Importers. The bigger
fight is on the Horizon when the National Liquified Petroleum Gas
Project Law is enforced, they will no longer be able to import butane
to supply Belize. That responsibility will rest solely with the
public-private company known as National Gas. They will have
exclusivity over importation for 15 years, and they will then issue
supply tenders to all distributors, including the Central American
companies.
As we’ve told you, the Government has presented this a consumer
protection mechanism to break the dominance that these companies have
on the LPG market in Belize.
Well, after mostly grumbling about it in the background, the companies
are finally making their position publicly known on the topic. No one
expected them to be pleased about the change, but they say that the
Government is establishing a protected monopoly on the market, which is
bad for everyone.
For comparison purposes, here are the Prime Minister’s comments on the
topic, followed by Audrey Matura’s stout defence of her clients, the
Central American companies:
http://www.7newsbelize.com/sstory.php?nid=49992&frmsrch=1
File: August 16, 2019
Rt. Hon. Dean Barrow, Prime Minister
"You talk about it's being a monopoly, it will have the monopoly in
terms of the importation, but how is that not better than the current
situation where there is an oligopoly and where basically it is one
Mexican common denominator that owns all the principal retailers or
certainly the wholesalers. So we are in hoc to a Mexican concern. This
will ensure that it is a Belizean concern, a public-private company
that will have the exclusive in terms of the importation. So this, if
it does nothing else takes us out of that stranglehold that these
foreigners have, on not just government, on the people of this country.
And absolutely, with this National Gas Company, you will see a lowering
of prices to the consumer."
Audrey Matura - Attorney for Central American Importers
"They’re exempt from all taxes, you know. You all need to do your
research. If these major private companies continue operating, the
Government will continue collecting GST, income tax, exchange control
prices, environmental tax, every tax. So, money is going back from
their money, into society for the good all. Under this National Gas
Company, no taxes are being paid. They’re exempt from all taxes. So,
you need to ask yourself, why would a government forego taxes that you
need, revenues that you need to run the state, give privilege to a
private company, which they own a percentage in, give them that
privilege for 15 years. Do you know how much taxes we’re gonna lose?"
Under that protectionism, the only way it will work and be beneficial
to them, to the government and the investors in there, is if 1, the
prices remain high. Imagine, if you’re selling at a high rate, let’s
say $5 a gallon. But, you’re only paying 1 dollar for that gallon, and
that 1 dollar, you add your overhead of another dollar. That’s $3
you’re making a profit on. You’re immediately, in those 15 years,
making back the millions you want. But, not only that, but the
government is also protecting that national company. Apart from making
sure that they make a massive profit in a short period, they’re
sweetening the pot by saying, Don’t worry National [Gas] Company.
Although you’re making all that profit, you don’t have to pay any taxes
on that."
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