Gas prices soar

The price of gas in the
Cayman Islands has risen to over $5 for premium unleaded, with the highest
price for regular gas coming in at $4.97.

The last time gas prices
were this high in Cayman was in July 2008, when prices for a barrel of gas were
over $100.

Chief Petroleum
Inspector Gary McTaggart attributed the higher gas prices to the influence of
the American market, which has seen an increase on the price of gas, averaging
about US$3 a gallon for regular.

“We pick up the
petroleum in Baton Rouge or along the Gulf Coast and whatever is happening
there will have a direct effect on us. The price of gas changes with the price
of oil and as refinery prices have gone up, it is only natural to see
increases.”

He added that the oil
spill in the Gulf will also play a factor in current prices and in the near
future.

“A lot of rigs in the
gulf have moved because oil pumping has been restricted by the Obama administration. It’s hard to predict
accurately just how things will turn out, but some estimates have the price of
gas in America at $7 per gallon by 2012. What would happen here in such a
scenario, I don’t know.” According to the ABC-TV News website, “Oil traded at
$91 a barrel on 14 January, though some analysts predict it will break the $100
mark this year.”

The article went on to
state that while consumers may have been able to absorb those hikes in 2008, it
is likely more difficult now, owing in large part to  the American economy’s reeling from a
mortgage meltdown, credit crunch, high unemployment and slow recovery.

Currently in the Cayman
Islands, Texaco stations are edging out Esso with lower prices. The highest
price for full service regular gas in Grand Cayman is $4.97; premium gas peaked
at $5.10 at some stations on the Island as of 14 January. When asked if it were
ever possible for gas station owners in Cayman to dupe consumers into buying
regular gas at premium prices, Mr. McTaggart said that was absolutely
absurd. 

“The oil companies that
we deal with are ultra-ethical when it comes to anything like that. They have
to get certificates for each load and have specifications that they do not fall
beneath.”

Mr. McTaggart, who was
the operations and country manager of Esso Standard Oil from 1985 to 2000,
added: “Most automobiles will run on regular, but some are specifically premium
products and if you have a car that is meant to run on premium and you put
regular in it, the car would begin to show signs that it was receiving a lower
octane.

“I think if anyone would
assume deceit it is because they are just not happy to pay $5. The oil
companies know which tankers hold premium and they would never put regular into
the premium tanks of any station.”