Motorists to pay more at the pumps
Motorists are now paying more at the pumps after an increase in the prices of gasoline and diesel and other fuels took effect yesterday, Monday March 14th, 2011.
According to information coming from the Ministry of Trade, diesel prices increased by 62 cents to $13.12 per gallon, while gas increased by 11 cents to $13.19 per gallon.
But this is only a fraction of the increases, since it has been hinted that consumers are also expected to see increases in the price of kerosene and cooking gas and even in their electricity bills should PDV Caribe increase the cost of its fuel.
That announcement was made by Domlec’s General Manager Colin Cover last month who said that it is more than likely that the company will have to source higher cost fuel from its supplier-PDV Caribe after they were informed of the new prices when their previous contract with PDV Caribe ended in February.
Domlec has since been negotiating with PDV Caribe for the past month and a half but expressed little hope that the situation is likely to change and is now looking at a 3% cost of increase.
The recent increases in the price of fuel are due to the global spike in oil prices which is thought to be exerting some upward pressure on fuel prices in the region.
Continuing unrest in Libya as well as other North African and Middle Eastern countries has led to the highest crude oil prices since 2008. As a result, the United States Energy Information Administration (EIA) has raised its forecast for the average cost of crude oil to refiners to $105 per barrel in 2011, $14 higher than in the previous outlook.
While the recent rapid increase in spot crude and gasoline prices have led to a significant rise in retail product prices, according to reports, motorists who are currently experiencing a jump in pump prices will likely see further increases later this year, since the recent increase in crude oil prices has not yet been fully passed through to gasoline prices.