Posts Tagged ‘Gas’

Jamaican Gas tax goes up by $7

Monday, May 16th, 2016

The Jamaican Government has increased the special consumption tax (SCT) on gasoline products by $7. This brings the SCT to $32.11, $32.88, $31.41 & $31.41 on 87, 90, diesel and Ultra-Low Sulphur Diesel respectively. The breakdown of fuel prices are shown below:

Gasoline 87

E10 87 Ex Refinery Price: 59.9692
E10 87 SCT: 32.11
E10 87 Ad Valorem SCT: 9.2075
E10 87 Final Ex Refinery Price: 101.2828

Gasoline 90

E10 Ex Refinery Price: 61.10
E10 90 SCT: 32.4792
E10 90 Ad Valorem SCT: 9.3581
E10 90 Final Ex Refinery Price: 102.9387

Diesel

Diesel Ex Refinery Price: 53.9494
Diesel SCT: 31.4145
Diesel Ad Valorem SCT: 8.5364
Diesel Final Ex Refinery Price: 93.9003

Ultra-low Sulphur Diesel

ULSD Ex-Ref: 61.4377
ULSD SCT: 31.4145
ULSD Ad Valorem SCT: 9.2852
ULSD Final Ex Refinery Price: 102.1374

It should be noted that while the SCT moved by $7 because of how the ex-refinery price is calculated the prices went up by $7.70 between May 12 & 13, 2016. The SCT is added to the initial ex-refinery price and then approximately 10% Ad Valorem SCT is added to arrive at the final price.  See e.g. below

$59.9692+$32.11 = $92.0792
10% (9.9995%) Ad Valorem = $9.2075
$92.0792 + $9.2075 = $101.2867 ( adjusted for rounding errors)
Total: $101.2828

Taxes on Gasoline

It should be noted that taxes on fuel now account for 41% of the ex-refinery price.

Once again it is important that Jamaicans motorists note which gas stations are selling gasoline at the best prices and take advantage of the available savings.

17 Stations involved in Bad Gas?

Wednesday, December 30th, 2015

The Government of Jamaica has declined to name the 17 stations apparently involved in selling bad or contaminated gas. Instead the Jamaican Government has order the stations to shut down by midnight December 29, 2015 while the investigations continue. The stations are distributed in the following parishes of Jamaica, as indicated below.

  • Kingston and St Andrew - 7
  • Clarendon - 3
  • St. James - 3
  • Manchester - 2
  • St. Catherine - 1
  • St. Thomas - 1

In time it will become obvious which stations are involved.

The decision not to name the stations at this time is reasonable in our opinion. The government is refusing to blame the gas station operators for the bad gas until investigation conclusively point to either one of or a combination of the following:

  • Rogue services station
  • Poorly maintained tanks/delivery systems
  • Rogue Truckers
  • Rogue Contractor
  • Contaminated Imported Gas

Instead of the big stick, the government has effectively gone for “voluntary” shutdown. The problem is the source of the contamination has not been pinned down. Once the stations remove the bad stock, and ensure the tanks are okay, look for the service stations to resume normal operations.

What this latest issue has raised is that there clearly a lack of monitoring of quality of gas being sold to consumers. It is clear that no systemic random testing for quality assurance was being done.

Bad Gas in Jamaica

Tuesday, December 29th, 2015

A week ago news broke in Jamaica about bad gas  affecting motor vehicles. I first heard of the issue while when I went to have my motor vehicle repaired at a dealer. There I overhead a conversation about cars in western Jamaica being affected by what by sound of things pointed to bad gas. Turns out it seems that the parish of St. Thomas has been worst hit with one garage operator claiming he has seen over 50 vehicles affected.

Long time issue?

The quality of gas has long been a concern at service stations. Al Edwards in an Observer article tackled the issue of fuel quality back then.  Neville Graham’s article in the Sunday Gleaner of December 27, 2015 carries the title there is “Big Business in Bad Gas“. The questions what has the government of Jamaica done to prevent this. In response the Governement launched a probe and today we begin to see hints of the findings.

How it damages

Fuel filters are found in the fuel lines of gas tanks and screen out dirt and rust particles from fuel.

“In these cars nowadays, the filter is really designed to last forever. It’s in the fuel tank, and it’s not something that’s supposed to be changed. They are very expensive because it is not something that happens every day (filter issues), and it’s all the newer cars that are affected,” Hudson said.

Yet at the end of the day motorists are left none the wiser as to which stations are affected. It is a tricky call to “name and shame” the gas stations as some have suggested. The problem is the gas stations might not be at fault as it might be the trucker/truckers that are responsible. Then again it might not be the truckers but it might be the source. Petrojam has said they are not at fault but gas is also imported by marketing companies. Until all the details are available it would be irresponsible to start blaming anyone.

The Gleaner however indicates from a copy of part of the report of bad gas that there are rogue gas stations are located in St Thomas, Kingston, St Catherine, Clarendon and St Ann.

Interesting RJR reports that  a service station in Morant Bay has refunded some of its customers affected by bad/contaminated gas. In another report a service station outside of Spanish Town is reported to have suffered over $800,000 losses when the gas it received caused the pumps to stop working. In that case it appears no gas was pumped into in motor vehicle.

My Advice would be

- Buy from a known marketing companies, Total, Rubis,Texaco, Epping,Petcom,Unipet

- Do not buy gas from any “Back door” service stations

- Do not but gas from anyone selling out of a drum…

Timeline

December 19, 2015 - News breaks in Media about Bad Gas

December 22,  2015 -  Probe ordered by the Ministry of Science, Technology, Energy and Mining

December 28, 2015 -  Report to be released tomorrow

Oil Prices fall as American Economy remains weak

Thursday, August 26th, 2010

According to a report from in the Jamaica Gleaner, Oil prices have now fallen to US$71.63 per barrel. This is certainly good news to Jamaicans . The analyst blame the drop in price on the weak American economy.

However a weak American economy threatens the Jamaican economy as the majority of our tourists come from the USA and significant  portions of our trade. Also many Jamaicans also depend on remittances from relatives in the United States of Amercican, Canada and the United Kingdom among other countries.

However, lower oil prices should result in lower electrcity bills. So while motorists might breathe a sigh 0f relief, consider the rest of the economy.

Related

Share and Save

Monday, January 18th, 2010

Jamaica Gas Prices was set up with the idea that persons would share and save. Today that vision remains the same. By taking a few moments to note the prices you pay at the pump and posting that prices you would have shared and helped someone to save.

If everyone shares, we will easily know the best prices and where to get them. If are see prices as you drive along noted them or better yet have someone driving with you note the prices and at a safe time post these at http://jamaicagasprices.com.jm or http://mobile.jamaicagasprices.com.jm/ on your smartphones such as the Blackberry, Nokia, IPhone, HTC and others. You can follow us on twitter at http://twitter.com/jamaicagasprice

Once again we invite people to share. We are committed to bring some new features despite our failures in the past.

We need your participation, share and save in 2010. We will all need each other’s support.