Gas prices soar

    gas

    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.”

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    1 COMMENT

    1. Are there regulations as to how much profit the supplier can make on a gallon of gas? Are there any consumer protection laws?
      1. Can the breakdown of cost be publish of rthe importation of gasolene?
      2. If due to new laws in the US the price is inflated, why not change the source of procurement? Buy from other countries like Trinidad who has its own refinery and surely is cheaper than the US.

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