Jamaica Gas Prices

This headline in the today’s Jamaica Gleaner “Dealers to pass on gas price increase to customers” had me laughing.

The question really is what have they been doing all along. Whatever increases they have been “absorbing” must have been very minimal as as far as I can see, every week that the ex-refinery price has increased the price at the pump has increased.

The article also raises the issue of a subsidy but the question realistically is from who. The government of Jamaica is in no position to grant any gas subsidy and I am not even sure they are in a position to reduce the fix tax amount currently on a litre of gas.

Troubled times lay ahead and Jamaicans will definitely need to revisit their budgets.

It seems the the taxi operators in Jamaica have had enough of observing the increased Gas Prices. Reports are surfacing that they are planning to ask the Government for a rate increase as soon as possible.

According to reports the taxi operators say it has been some while since they last had an increase but as things are they can not continue to operate at the current rates. They should also ask the Government how quickly to pothole riddled roads will be fixed.

They are however mindful that they will have to take into consideration what the commuting public can pay and that they will also have to improve the quality of service

There has been a sharp increase in the ex-refinery price of Gasoline products produced by PetroJam. Today PetroJam announced that the ex-refinery prices of 87 Octane, 90 Octane and diesel will increase by JM$3.03, JM$3.03 and J$2.42 respectively.

This price increase is likely to send shock waves through the Jamaicans motoring community. Over the last few weeks as Oil prices

The question is how will the Jamaican motorist respond? How will motorist deal with the surprising increase

What motorist will definitely have to do is figure out to conserve and avoid  being stuck in traffic.

Since trading began this week the price of oil has been inching ever closer to that US$100 per barrel mark. In trading yesterday, the price per barrel of Oil crossed the US$98 per barrel mark. This does not spell good news but by now we all know that. We will have to get use to living with the reality that the price will likely not go down significantly from that mark, in the near to short term future.

There are many reasons being put forward for the continued increase in the price of Oil

• The Turkish - Kurdish conflict in Northern Iraq
• Falling USA inventories
• The Impending Winter Season
• Weakening US dollar
• Decreased production in Mexico

The forecasts is for the US dollar to continue weakening against the major currencies such as the Euro and the Canadian dollars and continue recording new lows.

Whatever the reasons, Jamaica and the world has the current reality of high Oil prices to deal with. Its effect is being felt in higher gas prices, higher electricity bills, rising transportation costs and all areas dependent directly or indirectly on this precisous commodity.

Another week, another record as Oil prices take a steady march to US$100 per barrel. Yesterday Oil prices rose to record highs of $96.24. This is just $3.76 alway from the $100 mark.

The factors affecting the continued rise in the price of Oil include, declining United States inventories as we approach fall and the winter months, production problems in Mexico continued tensions in Mexico and the expected ,but not sure, increased production by OPEC countries. In the next seven days we will get an idea whether or not OPEC will or has indeed increase production by the shaky promise of 500,000 barrels of Oil per day. As for the other factors there is really no end in site.

With these high oil prices and Petroleum Corporation of Jamaica announcing increases ranging from  $1.96 to $2.54 it is hard to see any relenting in Oil Prices in the gas prices. Christmas they say has come early but certainly not for the Jamaican drivers only the Oil producers around the world.