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The Row Over LPG, As CA Companies Stay on Offensive
Tue, June 16, 2020
Last night, we told you how the retail price of LPG, also known as butane, would be increasing by 38 cents per gallon. Well, the Opposition, People's United Party, and the major Central American LPG companies are accusing the Government and the National Gas Company of taking advantage of the Belizean customer, in these very trying economic times.

The Opposition was among the first to condemn the price increase. In a scathing release, the party says, quote, "The increase in butane cost is insane and tantamount to rape." End quote.

The Opposition was joined today by the Central American butane companies, Gas Tomza, BWEL, and Zeta. Up until the end of April, they were the ones importing butane into the country. But all that has changed to make way for the National Gas Company, and tonight those former importers are also calling out the Government, the Bureau of Standards, and the National Gas company out for 2 price hikes in less than 2 months.

In a press release sent today, the Central American companies said, quote, "(we) denounce this exploitation of the Belizean consumers by the monopoly importer, NGCL: The former importers had warned that the creation of this monopoly would eliminate any competition in the industry and lead to the very exploitation of consumers." End quote.

And keeping up the public pressure, Audrey Matura, the attorney for these 3 companies, called a press conference to blast the Government for the price increase. As we've reported, she is in court arguing that the Barrow Administration violated the companies' constitutional rights when it refused to renew their import licenses.

But today, Matura went into public relations mode, when she openly challenged the Government to show exactly how the new prices were arrived at:

Audrey Matura - Attorney for Central American Companies
"When they created a monopoly by the importer, they were saying that the prices for butane should go down. The prices have not gone down. They have actually gone up."

"In April, it was only a $1.95 per gallon, wholesale, and $3.55 retail. So, we already had a 31 cents increase on the 14th of May. Now, yesterday the 15th of June, they announced another increase. That increase is 38 cents more for both wholesale and retail. So, now the new wholesale price is $2.64. The new retail price is $4.24. What I want the Belizean public to realize is that within the span of just a month, you're paying now 69 cents more on the gallon."

Reporter
"Have your clients encountered prices that are cheaper than what the Government says it is currently acquiring it at?"

Audrey Matura
"Yes, absolutely cheaper. Actually, my clients sent me proof that they can actually get it cheaper by 30 to 32 cents less than what the Government is quoting."

"How many people can't pay their school fees right now? How many people are unable to even cook and buy butane? How many people don't know where their next meal will come from? And this is what you're paying, you're paying more, under a true monopoly."

"We sent a letter to Mr. Trejo, Jose Trejo, the Controller of Supplies. We sent that yesterday when we got the new prices. We think there is a lack of accountability and transparency. We think there are questions they need to answer. I'll give you copies of the questions we're asking."

"They must prove to you [with] documentation, as to what is the formula how they come up with these prices. Last time the increase was 31 cents. This time, it's 38 cents. That's how we get 69 cents."

Yesterday, Matura wrote a letter to Jose Trejo, the Controller of Supplies at the Belize Bureau of Standards, demanding answers to 8 questions from her clients.

The companies want to know what has been the increase on the world market for LPG that has resulted in this price increase. They also want to know more details about the formula being used by the bureau to arrive at the new controlled price. They are also asking for details on what was the actual price of LPG the last two shipments.

This evening, the National Gas Company sent out a release of their own to respond to the statement by the Central American companies.

In that release, the NGCL said there is a transparent and straightforward pricing mechanism. They say the current increases reflect the global price index which "hit a low in late March and since then has been steadily rising at a rapid rate."

Finally, the National Gas Company says that they have been receiving direct feedback from customers who are very satisfied with their consistent blend of LPG: 70% propane and 30% butane. According to National Gas, customers are saying that the cooking gas they are providing is a safer, higher quality product.

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