Jamaica Gas Prices

The steady-sharp reduction in the price of OIL on the world market has not affected the price of gasoline to the Jamaican consumers as many would have expected. There has been little explanation from PetroJam. In today’s Gleaner of December 24, 2008, the letter of the day is entitled, “Peculiar PetroJam pricing policy”. Here is a quote

Petrojam has not explained to the motoring public why oil is going down on the world market and our ex-refinery prices are not anywhere in line with that trend. I’ll give a few examples.

Since early July, the price of a barrel of oil has fallen by 68 per cent (using the World Trade Index (WTI) prices (same as the so-called ‘Gulf Reference Price’ by Petrojam)) from US$141.06 on July 1 to US$43.84 on December 16 this year). Now Petrojam’s ex-refinery price for the following selected products have fallen from the peak on July 17 to the last listing on December 18.

You can read the rest at:
 http://jamaica-gleaner.com/gleaner/20081224/letters/letters1.html

It is time that we as Jamaican consumers act, share information on the best prices and hold suppliers to a higher standard. 

You can follow the discussion on this issue at this link:
http://jamaicagasprices.com.jm/forum/index.php?topic=15.0 

We would like to take this opportunity to wish you all  happy holidays and all the best for the new year.

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.

The last week has seen Oil fall to one year low of US$77 plus per barrel. This  as the financial problems in the USA spread to accross the World forcing central banks in many of the G-7, G-20 countries to intervene. The analysts argue that the falling price of OIL is the result of weak demand, fears of future economic decline and unavailabilty of funds to make futures purchase given the credit crunch.

In Jamaica, the local currency is coming under increased pressure and has now slipped to J$73.33 to US$1. Interesting Canadian and Pound have both weaken against the Jamaican dollar with J$64.63 and J$127.66 needed to purchase CAn $1 and Pound respectively.

Despite declines in the price of OIL the weak dollar against the US will result in an slight increase in the cost to local consumers. However, given the level of decline in the price of Oil, in the whole equation, gasoline should be cheaper in the coming weeks.

PetroJam taking us for a ride?
There is an interesting post by a member in the forum that we all could check out. Entitled, PetroJam taking us for a ride. In that post, using data available the member argues that the declines in the price of OIL are not being reflected in the local market . You can read it at
http://jamaicagasprices.com.jm/forum/index.php?topic=15.msg21#msg21, and give us your views

The Star in Jamaica is reporting the interruption of racket by persons trying to find ways of beating the high gas prices. This is certainly not the way to go. According to the star, the incident occured in the parish of St. Catherine.

It involves the siphoning of gas at night from the parked vehicles owned by Bouygues Contruction Company. According to the report the company has been losing millions of dollars to theives. A sting operation was set up and one man was caught and a Nissan Pickup seized as well as twenty-four five gallon containers.

Simply put be careful where you buy the precious commodity. While you might want lower prices you don’t want to be hauled to court for aiding and abeit crimnal activities or receiving stolen Gasoline.

Source: $M GAS RACKET BUSTED

Motorists in Jamaica will be happy with the news that the price of the precious commodity has fallen. The ex-refinery price of 87  and 90 Octane dropped by JM $2.75 per litre and $0.25 for diesel.

On a day when,  the price of Oil fluctuated between US $105-$108 per barrel of Oil the reduction in gas prices was certainly welcomed news.

Despite this drop, motorists should continue to seek the best prices and make every effort to conserve.

We now watch to see what the service stations will do and if we will see this reduction at the pumps.