The country's Butane dealers say they are going to shut down on Wednesday, in protest of Belize Natural Energy getting into the market with locally produced butane.
A release was issued today from a group of five companies called the Liquid Petroleum Gas Importers of Belize.
They refer to a, quote, "recent disruption of the market" and explain that, for months, they have been asking government to make a decision on BNE's position in the market as a producer and not a retailer. Apparently, the importers allege that BNE wants to retail inexpensive local butane - and they won't have it.
So, the LPG importers, comprising Western Gas Company, Belize Gas company, Grupo Tomza and Z Gas have, quote, "decided to shutdown operations countrywide on Wednesday, January 26, pending the implementation of a fair regulation that will ensure our continuity in the market."
But, the country's largest supplier is not with them. Belize Western Energy - whose logo appears on the LPG Importers release - issued its own release this afternoon, completely disassociating itself with the group.
BWEL says it did not participate in the drafting or distribution of the release and it was issued without the company's consent.
Moreover - and this is the important part - BWEL is not participating in the strike and quote "assures customers that the company is fully capable of supplying the entire country, preventing any shortages in any given day."
According to the Minister responsible for regulating Butane, Erwin Contreras - there won't be a strike on Wednesday. He says the matter is being taken to Cabinet tomorrow and his ministry will meet with the LPG importers on Wednesday morning to discuss Cabinet's decision.
As we reported on January sixth, BNE started producing butane last year and is now trying to get into the market at the retail level. Spokespersons for the company Daniel Guttierez said as much in an interview three weeks ago:
Daniel Gutierrez - Marketing Department BNE
"Once we are able to sit down with the Government of Belize, and remember butane is a regulated product so it is not for BNE to go and sell it directly to the people, unless the government allows us to do that. Obviously we're asking the government to sell it directly to the people and the reason being that we will be able to bring a much better product at a much better price to the Belizean people. We feel that we will be able to come to an agreement with the government but it is essentially the government's call. But BNE wants to market this product directly to the Belize people to be able to bring much better prices than what the importers are able to."
"Unfortunately we can only supply 30% of the market and it is important for us to be able to work out a system whereby we don't have disruptions in the market. But we can be able to provide this product, which again has a higher butane content than the products out there to the Belizean public. And what that means is, it burns hotter, it last longer, and it is safer to store and handle."
Presently a 100 pound cylinder of BNE produced butane sold at LP gas and supplies in Spanish Lookout sells for 82 dollars and fifty cents per cylinder, which is about forty-four dollars less than a cylinder of imported butane at the controlled price.
The butane importers, though, say their product is of higher quality….
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