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Central American Companies Launch Butane Strike; GOB Won't Budge
posted (September 9, 2011)
Today it was difficult but not impossible to get your butane tank filled because three of the country's largest butane importers and suppliers went on strike. That's BWEL, TOMZA and Zeta Gas which are all Central American Companies, which import their butane form regional affiliates.

They are demanding that government allow them to increase the retail price of a cylinder of butane. Now, the price increase may be merited, but all three companies continue to operate in open defiance of statutory instrument number 12 of 2011 which means they haven't put in the certified scales to ensure you're getting what you pay for. And because of that, Government's position is that if they don't start following the law on scales then there's no room for negotiation on the price.

The Minister who's been leading the talks with the butane companies, John Saldivar told us more in an interview late this evening:

Voice of: Hon. John Saldivar - Minister of Public Service
"The Government's position is that we will not consider increasing the price of butane gas to the consumers until the importers and retailers become compliant with the statutory instrument that requires them to have scales on the trucks that deliver, butane to the house-hold, and in the depots where butane is purchased."

Jules Vasquez
"Have they explained why they are so intransigent on this issue? I count that it's almost 175 days since that statutory instrument was signed."

Hon. John Saldivar
"I think that some of it has been the mobility to get the proper scales, but we believe that they are able to get the scales, that scales are available, and with the proper efforts and desire, they should get the proper scales. And so, we feel that there is no reason that they should not, by now, have the scales that are necessary to become compliant with the statutory instrument."

Jules Vasquez
"So, the Government's position is that it remains firm that it will not negotiate until and unless those scales are in place? We know that it's not something - if you haven't been putting things in motion, it's not something that can be done in a day. It requires testing, certification, acquisition, all these thing."

Hon. John Saldivar
"Well, from the position of the consumer and those who have been following this issue, for several months now, the Government has been giving the importers and the retailers enough chances; we've extended deadline for them to become compliant, and we believe sufficient time has been given. And at this time, the Government is not prepared to negotiate anymore in terms of becoming compliant with the statutory instrument that requires them to have scales on their trucks and at their depots."

Jules Vasquez
"Now, how long is the Government able to maintain this hardline? Because while it is absolutely laudible, and I support it, certainly there is a practical reality that these people supply a large percentage - I would suspect - the majority of the butane imported in this country. How long is the Government able to hold this hardline knowing that while the reyes maybe able supply, BNE may be able to supply, ultimately these companies have a sort of lock on the market?"

Hon. John Saldivar
"Several things to note, Jules, the last time that such a strike was threatened, we did have a meeting with several of the players in this industry. And at that time, we did feel that we had sufficient contingencies in place to ensure that the consuming public would not be deprived of butane. And at this time, Government feels confident that with the other suppliers that are prepared, including Belize Gas Limited and Western Gas Limited, who have committed to the Government that they are prepared to continue to supply butane to the country of Belize, and BNE being able to take up their portion of about 25 to 35% of the demand, we believe that in the very short term, we should be able to avoid any shortage of butane in the country. In the long term, we do have persons who are interested in importing butane into the country. And we believe that if this is extended into that point, we'll have to look at that option."

As noted in the interview, the relevant Statutory Instrument was signed 171 days ago.

Government says it will engage the Central American importers during the course next week but at the same time, encourages consumers to exercise their rights by ensuring that suppliers deliver value for money - meaning, make sure you demand that your butane tank be weighed before and after it is taken for filling.

It's important because government's release claims that the companies say consumers are not asking for their cylinders to be weighted before and after it is filled.

So consumers are advised to demand weighing or, otherwise - we can assure you - there's a great likelihood you are getting less butane than you are paying for. We did a random test in February and we were shorted as much as 30 pound on a hundred pound cylinder and 12 pounds on another. And we still have not been refunded fifty-three dollars that were cheated out of - even though the bureau of standards verified our figures...

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