Gas prices in the Cayman Islands rose by roughly forty cents between 27 and 28 April, with the highest price for premium grade gasoline at some gas stations coming in as high as $5.96 per gallon.
The Petroleum Inspectorate’s website had not been updated to reflect the price increases as of Thursday afternoon. .
However, according to Jermaine Sharpe of Esso Ltd, “Two ships came in over the Easter Holiday, one for Texaco and one for Chevron.” He added that he was unable to comment any further because, “The person authorized to comment on such issues is on vacation.”
Several calls to the Petroleum Inspectorate were unsuccessful in eliciting comment.
Gas prices increased by 25 cents only weeks ago (in April) and by about 10 cents less than a month earlier.
At the time, Country Manager for Esso Standard Oil, Alan Neesome, said, “Because the cost of goods has increased, this has to be passed on to suppliers, who in turn pass it on to customers.”
He also addressed the issue of why some stations might have higher costs than some: “One of the problems with prices rising so quickly in a market where there is competition is that some people may have to raise prices upon receiving a shipment, whereas their competitors may not have received a shipment,” he said, adding that, “In cayman, a lot of the uniformity in prices has to do with the fact that dealers’ storage is limited and they get fuel every day or every other day.”
Gas prices are impacted by several factors including the price of crude oil, government regulations, taxes, supply and demand, transportation costs, market speculators and competitive conditions. As a result, it is difficult to pint to any one thing that is affecting the market at any given time.
Oil companies do not set prices at the pump in the Cayman Islands but can make recommendations on the amount of increases, as the companies themselves are governed by United States anti-trust laws that do not allow price fixing.
Please see more on this story in Monday’s editions of the Caymanian Compass…