Last night on the news, we told you how Southern Choice Butane, formerly known as Zeta Gas, announced publicly that they no longer have any cooking gas to sell to its customers. As a result, the company closed all of its branches countrywide.
They are among former Central American importers of LPG who have gone to court to challenge the Barrow Government's change in the regime. Southern Choice, Gas Tomza, and Belize Western Energy all held licenses to import butane into Belize, but at the end of April, those licenses expired.
The government refused to renew it, because a new public-private company, National Gas, now has the exclusive right to import the cooking gas into Belize. This change was described as a consumer protection mechanism to break the dominance that these Central American companies have on the local market. But, the former importers have been asserting that the change could have negative effects on you, the consumer because they can no longer assure an uninterrupted supply of LPG.
Well, Southern Choice Butane publicly declared yesterday that all their inventory of butane has been sold out. They were basically pointing fingers at the Government, the regulator, and the National Gas company for the shortage that their customers countrywide are experiencing.
Today, 2 of the company's representatives called an impromptu press conference at their attorney's office to explain themselves in their own words. Here's what they had to say about the disruption of their business, and the negative effect is having on their customers:
Ernesto Uh - Representative, Southern Choice Butane
"As you may all be aware, there is a new monopoly for the LPG industry in the country, and they are supposed to be providing LPG at the beginning of this month that just started. We currently are out of the product, and it's of great concern. We have contacted the Belize Bureau of Standards, and we have also contacted Dr. Canton, to try and find what the process is that we need to go about to acquire the product. According to Dr. Canton, he is waiting on the price structure from the Government. And at the same time, the Government has not been able to give us the price structure."
"We have been informed that this new monopoly is supposed to be giving us a better price for the final consumer. In this view, and the fact that we are out of the product, and all of our branches are currently closed, we're hereby requesting the intervention of the Bureau to assist us in acquiring this information."
"We have been operations in the country from November 8, 1994, and have 26 years of experience in the Belizean market. This period has allowed us to know our clientele, and to provide quality service to them. Currently, we have branches all over Belize, and control approximately 30% of the market."
"At this present time, we directly employ 50 persons, and indirectly employ 300, thus benefiting 350 families. We are a solid multinational company. Our operations are supported by the supply terminals located in Guatemala, which is the second-largest in the region, with a holding capacity of 30 million gallons of LPG, supplying countries in Central America, including Belize. At this present moment, we have that storage capacity, and we can provide LPG at a very cheap price. We request the government to allow us to continue to import, so that we may continue to supply 30% of the market that we have been doing over the past years."
"We hope that the Government of Belize will give us the new price structure, and the market conditions for LPG. If the government is unable to meet those demands, we request immediate approval of the importation of LPG into the country."
Reporter
"It seems that the Government is not listening because it's not the first time. You guys had also asked that the licenses be extended so that you can continue to bring in LPG. They denied that. You're making another request. It's not likely that they're even going to listen to that. What do you do then?"
Ernesto Uh
"This is why we have decided to approach the media and to make an official statement saying that we need something to be done."
Just a while ago, the Government released the new, fixed control prices for the industry - which are higher.
Butane will be sold at the retail price of 88 cents per pound or $88.00 per hundred pound cylinder in urban areas, namely Belize City, Belmopan, San Ignacio Town, Benque Viejo Town, Orange Walk Town, Corozal Town, and Dangriga Town, and Punta Gorda Town.
In all the rural areas, butane will retail at 90 cents per pound or, $90.00 for hundred pound cylinder.
A press release from the Supplies Control Unit says, quote, "this price adjustment reflects an increase in the acquisition price of LPG. This spike in the acquisition is precipitated by cutbacks in production in major producing countries such as the United States, Mexico, Russia, and OPEC." End quote.
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