Jamaica Gas Prices

Over the last few weeks gas prices, gas prices have been trending down. Since the Government’s increase of the GAS TAX, the price annouced by  PetroJam has tend to trend in the upward direction. To be honest some of this movement was directly related to increase in price of OIL on the world market that now hovers in the  high $60s to low $70s per barrel.

Price difference remain high

One trend that has not changed is the difference in prices  depending on which station you visit. You can see a quick comparison by click here. For e.g. the price differential for E10 was almost $6 per litre.  The price difference for other products is even higher.

New Price Leader

Over the last week, the arrival of Micheal Service Station at Heroes Circle has introduced a new price leader. Micheal’s took over from the Texaco operation. For years we wonder why that station hardly showed prices, they were expensive, and why they did not organise and compete against Total. While the competition is finally here. The lines are organised now with entrance and exit marked off with chains in place to control the traffic.  The result is from a situation of empty pumps and poor service, to long lines and much bettter service. The hope is that they will keep it up.

It is now official, the Special Consumption Tax(SCT) on Gas products is to be increased by $8.75 per litre. The  Finance and Public Service Minister of Jamaica, Audley Shaw, announced the increase in parliament today.

Many gas stations, in Kingston were swamped with motorist trying to get the ‘last’ of the cheap gas. There was no such rush according to radio reports in the rest of the country.

The data below shows how the situation changes when this tax comes into place on April 2009, using the ex-refinery price of Unleaded 87 for April 23, 2009. 

Current Situation

Ex-Refinery Before Tax: $44.17

Current Tax: $7.36
Ex-Refinery After Tax: $51.53

With Tax increase:

Ex-Refinery Before Tax: $44.17
New Tax: $16.11 (7.36 + 8.75)
Ex-Refinery After Tax: $60.28

As usual gas stations will their respective margins.  

Now that the gas tax increases have been announced, it is hoped that Jamaicans will either accept the decision or if so moved, lodge their protest in a peaceful manner. One simply protest is to boycott the product as far as possible or simply conserve. Time will tell whether or not Jamaica will face similar Gas Riot to those of 1985 and 1999.

November 1, 2008 was the date when E10 became offical available to Jamaicans. So far, based on feedback sales appear to be going well at stations that are carrying the products. It appears the Jamaican motorists has embraced the product but not so some marketing companies.

So far based on information we have only the some locally based marketing companies seem to be carrying E10. Petcom and Unipet seem to be leading the way. A Jamaica Information Service article quotes the Energy Minister Clive Mullings as saying,

“If anything, the other marketing companies should have got on board much more quickly, because it is creating pressure on Petcom, Multipet and Unipet because their loads are finishing quite quickly and they have to be getting other truckloads because of the pressure on their system”.

I have not used E10 yet, but based on queries by old 1991 Nissan Sentra should be able to use E10 with no problems. I see the long lines at Petcom and Unipet on Slipe Road creating serious traffic congestion.

The article also stated that about 11 stations are now supplying E10, 8 Petcom stations, 4 Unipet stations and 1 Multipet STation.

Remember to submit your E10 prices, along with other Gasoline prices and tell us about your experience getting E10.

Source:   JIS Article on E10 doing well

Increase calls for someone to look on the prices of petroleum products are being heard in the media landscape. Last night CVM TV carried a report from the Consumer Affairs Commission point to the slow rate in which Service Stations reduce their prices.

They CAC according to CVM TV also reported that some stations were increasing prices while PetroJam was reducing prices. It is interesting to see the price differences ranging to over $10 dollars per litre.

Today, Oil closed at less than US $70 dollars a barrel. Once again for the 5th week PetroJam once again reduced the ex-refinery price.

Letters in the Gleaner

In the Gleaner a few letters are appearing from disgruntled consumers which is very good. On writes.. 

It is alarming that oil has fallen over 45 per cent on the world market and diesel and gas prices remain high at the pumps in Jamaica. From a high of US$147.00 plus, prices have plummeted on the world market to US$75.00 plus per barrel as of October 15.

Oil price decline not passed on 

Another writer cries…

I think I speak for everyone when I say that a 10 per cent drop is unjustifiable. Is it that the common consumer is not entitled to a fair cut? How can Petrojam continue to keep gas and gas oil prices high, when the entire Jamaica continues to witness prices falling?

Why no comparative gas price reduction?

More and more Jamaicans need to start writing and complaining. Select were you buy gas from wisely and submit your prices for others to see.

What do you think about the prices of Petroleum products in Jamaica? Let us hear your views.

It has been a long time since the price of a barrel of OIL has fallen below US $70. This continues to demonstrate the situation that the world economy has found itself. The price rebounded slightly at the end of the day.

When Hurricane IKe hit the Texaco coast in early September and the OIL production in the Gulf was shut down the normal tendency would have been for price of Oil to go up. The problem was it was not normal times and the price of Oil actually fell.

For an interesting read on the price of OIL see

http://edition.cnn.com/2008/BUSINESS/10/16/oil.prices.low.ap/index.html