7 News Belize

Butane...
posted (September 12, 2011)
If you tried to get your butane filled up today - particularly in Southern and Central Belize - it couldn't have been easy. That's biggest the three biggest importers and suppliers of Liquid Petroleum Gas: BWEL, Tomza and Z-Gas, are all on strike. The three Central American companies say that world prices for LPG have gone up - but government has not adjusted the controlled price since February when a 7news investigation revealed widespread fraud in the market.

And government's position now is that it won't even discuss a price increase until the three companies outfit their depots and trucks with the scales - a requirement that was signed into law in March, 175 days, almost a half year ago.

So that's where things stand tonight: the strike continues, and government isn't budging and neither are the companies. But more importantly, the supply has not been disrupted; sowed down maybe, but not disrupted.

And that's because Belize Natural Energy and the Reyes companies are not striking and they are trying to fill the hole that's been left in the market - but it's not been easy because the Central American Companies - which are all part of the same Mexican family ownership - have come to dominate the importation, as well as the distribution on to wholesalers and to homes.

In Belize City today, that meant lines at both Belizean owned butane vendors. We visited Southside butane, where it was a principled wait:..

Andrew Flowers, Southside Butane
"It has affected me in a way that we will now have to ration on the butane that we are receiving from our local supplier and of course there is a rush because the strike that these companies have launched".

Jules Vasquez
"Ok, because right now you are they only person selling butane on a retail basis in the City?"

Andrew Flowers, Southside Butane
"Myself and another local distributor which is Brown's Butane".

Jules Vasquez
"Ok, so what has the rush been like?"

Andrew Flowers, Southside Butane
"It has been a very serious rush since Friday. In fact one of the main importers passby and mentioned to us that, you must close the depot, if you don't do that by midday Friday we would crush you when everything goes back to normal. Meaning that at this time the present price for a hundred pounds cylinder is $126.00. The intention is to sell it for $88.00".

Jules Vasquez
"To drive you out of business".

Andrew Flowers, Southside Butane
"To drive me out of business, which mean that obviously they don't need me a raise".

Jules Vasquez
"If they can sell for $88.00."

Andrew Flowers, Southside Butane
"If they can sell for $88.00".

Jules Vasquez
"Explain to me the pressure you are under right now? it's 10:30."

Earl Young, Fibbers Chicken
"We are supposed to open from by 11:00 and we don't have any gas and what happened is I don't like have they hold us at ransom, because they have already cheated us so many years ago. Now they want a raise, that's not fair. I guess it's time now for our black people to get up and stand up for our rights and stop all the talking and do some action because this is not right. There have people out here that wants to cook food that have their kids at school, what will they eat? You know what I mean; they need a home cook meal. I don't see it right for those guys to just up in arms and just hold us at ransom and don't want to sell us any gas. They have it right there".

Jules Vasquez
"How are you going to deal with all the demand? You don't have any gas right now".

Andrew Flowers, Southside Butane
"Just bare patience the gas is on its way, we ran out, we were selling and we ran out, but the next half hour or so we will start selling gas again. Just a matter of time before and we will ration it as I said and each customer understand that a ration of $25 can hold them over so that everybody can get a bit of butane and as soon as that is finished then they can come back again".

Jules Vasquez
"In going against the cartel - the Central American Cartel of importers, you are relying basically on the community to have your back?"

Andrew Flowers, Southside Butane
"I am relying on the community to have my back that is indeed so and in fact they are not relying on the community at all. These people want to crush the community as well".

Earl Young, Fibbers Chicken
"All of us have to come together and deal with this, to support the local butane dealers and let go the international ones, because they don't have the best interest of us the people, all they are worried about is money. We went through our business - they alrteady cheated us out of the little money we have".

Jules Vasquez
"You buy by the percentage or by the gallon?"

Earl Young, Fibbers Chicken
"Well we are supposed to buy by the percentage but we still get it by gallon because the truck does not come with any scale on it. So I am still waiting to see the scale, it must be fish scale we are talking about".

The gas struck came over an hour after we did the interview, but the folks were still waiting and finally got their tanks filled, but on a rationed basis. And while the Reyes Group and BNE and trying to keep the supply uninterrupted, Government is in talks with other importers to enter the market and take up the slack. They expect that in this way full supply can be restored even if the Central American companies choose to remain on strike.

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