Jamaica Gas Prices

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

The price of Oil has spent most of this week so far below the US$100 per barrel mark. In fact It went as below $92 on Tuesday. The sharp increase today could be the result of reactions to the bombing of the US Embassy in Yemen apparently Al Queda.

It is interesting to note the price of OIL recently was not negatively affected by hurricane Ike that devastated sections of Texas and knocked out a few oil platforms. Thee attacks by rebels on Oil pipelines in Nigeria or OPEC decision to cut production did not seem to faze the market. There are some reports that there has been slight decline in demand for OIL and this is possible part of what is keeping the price in check.

Another factor that could be affecting the price of OIL is the problems in the financial markets in the USA and the effect that will have on consumers.

In Jamaica, the price per litre  of Gasoline 87 and 90 went up by fifty cents (JM $0.50) while the price of Diesel decreased by 89 cents(-JM $0.89).

Of interest:

• Al Qaeda blamed for U.S. Embassy attack

It now seems that the tipping point has been reached and Jamaicans are now reducing their expenditure at the pumps. The Jamaica Gasoline Retailers Association president, Errol Edwards,  reports that in recent times there has been a 5-7% reduction is the amount of gas being sold. He is more than right in blaming the high gasoline prices for this reduction.

On a day when Oil prices rose to a new high of US$127 per barrel of Oil, Jamaicans are evidently finding the high prices troubling.  Jamaican consumers are also being hit with higher food, transport, water and energy costs.

There are projections that the price of Oil could average $141 for 2008, with some analysts predicting Oil Prices of US$200 per barrel.  Jamaican consumers will now have to make every effort to conserve.