A promise by Venezuela to supply propane gas to fill the gas cylinders for Grenada’s PetroCaribe Company has not materialise.
According to a well-placed source, PetroCaribe was forced to purchase the gas from SOL EC Ltd at Grand Mal in order to launch onto the Grenada market a few weeks ago.
The source who preferred not to be named said that PetroCaribe has entered into a loose agreement with SOL to fill its bottles with propane gas until it can finalise arrangements with Venezuela.
He spoke of mixed reaction by Grenadians to the entry of the new liquefied dealer on the market.
He said the sale has not been “causing problems to the other suppliers” as homeowners seem reluctant to pay the additional monies that are needed to switch to cylinders from PetroCaribe.
He stated that based on simple Mathematics, it will cost a homeowner upwards of two years to recover the investment being put out to switch over to the new entrant in the market.
“I have visited some places that sell cylinders from PetroCaribe and the others and you are seeing that less PetroCaribe bottles are present on these sites”, he said.
“I did a count and in one place I saw the place was almost fill with gas from Rubis and hardly any bottles at all from PetroCaribe”, he added.
Another major liquefied retailer on the island told this newspaper that the profit margin on a bottle of PetroCaribe “is extremely small” for him to make any profit from the business.
“As far as I can see, it is not me but the government people who will be making the money on selling the new gas from PetroCaribe. I am only selling it because they (PetroCaribe) asked me to sell a few bottles”, he remarked.
The Keith Mitchell-led New National Party (NNP) government in St. George’s has turned to PetroCaribe with the hope of providing cheaper gas for the vulnerable population in the country.
Last year, Economic Development Minister, Oliver Joseph announced that 15, 000 20 lb cylinders were brought into the country as part of the PetroCaribe deal.
In explaining the long-delay experienced in putting the gas on the local market, Minister Joseph said: “….The delay in not starting the distribution in the market is simple because we are awaiting the shipment of the propane to Grenada to fill the LPG tank”.
THE NEW TODAY understands that the promised shipment from the Venezuelans did not arrive thus forcing PetroCaribe to make approaches to SOL to use its gas to fill their empty bottles.