Archive for November, 2007

Good news for Jamaican Motorists

Wednesday, November 21st, 2007

Jamaican motorist can breathe a little sigh of relief as the ex-refinery price of 87 and 90 Octane decreased by $0.27 while the price for Diesel increased by $0.05 . The decreases still does not bring the prices below those ex-refinery prices of two weeks ago but right now any decrease is a welcome one.

Diesel most expensive fuel

Diesel is not the highest price fuel of the three used by Jamaican motorist. This is mark change from a how thing use to be. Diesel was once touted as the cheaper alternative fuel and Jamaicans were once encouraged to look at purchasing Diesel-powered vehicles. Despite the increase the fuel economy of Diesel engines still make those vehicles an attractive alternative.

On the gas prices scene, the thing that Jamaican motorists will have to look out for are the service stations that decide to actually reduce the prices and how quickly they will do so.

Oil Prices close in on $100 mark again

Tuesday, November 20th, 2007

After retreating last week, Oil prices on the world market headed towards the US $100 per barrel mark again. The price of all moved above US$ 98, $98.30 to be exact, for the first time since it reach record heights of $98.62 on November 7, 2007.

According to an article at Bloomberg.com, analysts believe this is because of the weakening United States dollar making commodities an attractive option for investors.

The United States dollar is reported to have fallen to a new low against the Euro.  Another problem for the Oil Market was reports of a fire at a Shell production plant in Alberta and it is believe this will cut output therefore affecting supplies for the United States Market.

This is once again bad news for the Jamaican Motorist as we expect PetroJam, the local refinery in Jamaica,  to announce increased ex-refinery prices tomorrow.

Slight increase in Gas Price.

Wednesday, November 14th, 2007

There was a slight increase in the ex-refinery prices announced by PetroJam this week. The prices of 87 Octane and 90 Octane increased by $0.38 while the price of Diesel increased by $0.33.

This was expected as despite the fact that there was some retreat in Oil Prices this week, a barrel of oil still sells for over US$90 per barrel.

Motorist in Jamaica will be thankful for the retreat and will be hoping reduced prices soon.

Oil Bubble Burst?

Wednesday, November 14th, 2007

This week Oil Prices has gone into somewhat of a retreat  falling as low as $90.50 for a barrel of Oil although it pushed back to the $91+ region late Tuesday afternoon.

The analyst as usual are divided on the reasons but have highlighted the following:

  • Weak and Weaking U.S. Economy
  • Less likely demand than predicted as a result of the point above
  • Profit Taking
  • Defused Iran-U.S. tensions
  • End of Oil Bubble?

A Washington Times article,  Oil Prices retreat from $100, reports, “Iran has handed over  blueprints key to its nuclear program, meeting a central United Nations  demand and potentially defusing the country’s standoff with the West.” This is good news.
In a Business week article, End of the Oil Bubble?, analysts question whether or not much of the increase was on based on ‘idle speculation’.  A quote in the article  attributed to one Fadel Gheit, senior energy analyst for Oppenheimer Holdings (OPY), says “Oil prices have risen ridiculously high ridiculously fast because of speculation,” and “It has nothing to do with fundamentals. It’s a bubble, and the question is not if it’ll burst—it’s when?”

Expect no Gas Subsidy in Jamaica.

Monday, November 12th, 2007

Another interesting article in the Jamaica Gleaner entitled, “No Gas Subsidy”. It reports Clive Mullings, Jamaica’s Energy Minister, as saying that any gas subsidy would wipe out PetroJam’s already thing profit margins.

The Energy Minister is also reported to be encouraging conservation as priority. That is good news but where is the public education programme?

There are a few other things of note in the article. Kingston & St. Andrew is not Jamaica, and it is one of the things we here at Jamaica Gas Prices are struggling with and we would like to encourage users in the rest of the Island Jamaica to submit prices while taking time to thanks those that already contributing. We are especially grateful to our contributers from St. James, St. Catherine and Clarendon.

There is really no clear price leader in terms of brand or location as there are gas stations in Montego Bay that often report lower prices than those in Kingston. In the Slipe Road - Heroes Circle Area, Total, Unipet and Petcom are all selling 87 Octane for $61.26,$61.26 and $61.27 respectively.

The price of diesel continues to be an eye opener. Diesel is in effect more expensive when compared to 87 Octane and in many cases now equals or surpasses 90 Octane.

One thing is clear rising gas prices is clearly now a concern to all.