7 News Belize

Hon. Saldivar Will Query Big Butane About Prices
posted (February 17, 2011)
Yesterday we showed you how one company in Spanish Lookout sells butane. LP Gas and Supplies does it by the pound, and you can check it right there, on their scale, or their meter: a hundred pound cylinder is equivalent to 22 gallons of butane. What also caught our attention is the price they sell a hundred pounds of imported butane for; it's only 99 dollars. In Belize City that same tank sold by the same importer who sells to LP Gas costs $126.00.

We today asked Minister of Governance Improvement John Saldivar who sits on the Cabinet Subcommittee on Butane what the price disparity illustrates to him. First, though, we asked him about the Statutory Instrument requiring that scales be installed at all butane companies countrywide.

Hon. John Saldivar, Minister of Public Service
"Yes we are preparing a statutory instrument to bring back into the force the need to have a scale at every depot and in every vehicle that distributes butane."

Jules Vasquez
"How soon will that be finished?"

Hon. John Saldivar, Minister of Public Service
"I believe they are working on it now and the intention is to have it in place by tomorrow, so I am hoping that that can be done between today and tomorrow. I think we all accept that this was a standard that was laxed and we need to put it back in place."

Jules Vasquez
"Do you accept that consumers have been systematically defrauded?"

Hon. John Saldivar, Minister of Public Service
"I haven't seen any of your news clips so I haven't been privy to the evidence that you have presented. But I can imagine in any kind of business that there will always be unscrupulous business persons and so the possibility certainly exists."

Jules Vasquez
"Now we went to LP Gas in Spanish Lookout yesterday which is run by the Plett brothers; owned by the Plett brothers. They sell imported butane which they buy from Tomza, the same kind I buy here, they sell for $99 per 100 pound cylinder. Now he is buying it, he is not an importer. He is buying it from an importer and he can still make his money while selling it for $99. What does that suggest to you?"

Hon. John Saldivar, Minister of Public Service
"Like I have said earlier on the talk show, Jules, If that is the case indeed we need to review the formulas that exist that determine the price of butane. If a local importer can sell his butane cheap enough to a retailer so that that person can retail it at $99, then we need to take another look at the formula and that's why I have suggested that Plett should give me the evidence of how much he is purchasing his butane for from whichever company he is purchasing it from, and when we look at those figures then we will need to call in the importers and look again at the formula that determines the price ceiling, because the only thing that changes from month to month is the acquisition costs and so I don't think that that has changed so drastically that one company can provide the gas cheaper than the others. I believe that it is the formula that needs to be revisited and so I call on Mr. Plett to give us the evidence that he is purchasing his butane much more cheaper than the price that we know it to be, and we will take another look at that formula."

Jules Vasquez
"Do you believe that if it is - and it has been by us -verifiably established that there is a systematic fleecing, that some redress is owing to the consumers?"

Hon. John Saldivar, Minister of Public Service
"If that is revealed, certainly, I believe that government will have to take a look at what has been happening in the past and as long the evidence can be verified and the facts ascertained then government will have to look at what it can do to redress this issue with the consumer."

And as a follow up on LP Gas and Supplies, yesterday the company had 6 of those scales they use to weigh butane for sale. By 9:30 this morning, all six, for $1,100.00 dollars each had been sold.

And indeed multiple sources have told us that in the wake of our expose of systematic deliberate fraud under what one company calls "inventory efficiency", butane companies have been scrambling to properly calibrate their flow meters and to install scales - which is just what we've been pushing for.

Today, the country's largest butane importer and supplier, BWEL issued a statement showing - not quite contrition - but at least a change of tone. The release - which, again, was not sent to 7news, says that the company is, quote:

"Establishing a program that allows the client to witness the service and quantity of the product being pursued…" y quantity we hope they mean the weight.

The company adds that it is, quote: "working with the Bureau of Standards to not only build on our internal quality assurance."

It adds that "An official invitation has been issued to the Bureau of Standards to visit our LPG depots countrywide to do their own inspections for quality & safety compliance."

Of course, that is a red herring because BWEL knows full well that the Burea does not have the equipment to check their flow meters.

Still, like we said, the change of tone from "deny everything" to "working on things" is welcome. But showing that there's still plenty of denial to go around, the company closes its release by reiterating its now rather lame protestation that, quote: "We will not stand by and allow any media house to injure our good name…. and we are pursuing legal advice to ensure the restoration of our company's good name and image."

Here at Channel 7 we are pursuing our refund from BWEL and TOMZA. Both companies shorted us when we bought butane last week. We have duly filed a consumer complaint and we are waiting on now long-delayed word from the Bureau of Standards to see what's being done about it. We were told today that the complaint is still with the Solicitor General who is investigating what legal measures can be taken to provide us redress for being cheated.

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