Massive 40 cent jump at pump

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… 

TOPtankerSTORY

An Esso oil tanker deposits fuel at a George Town station Wednesday.
Photo: Stuart Wilson
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4 COMMENTS

  1. The government needs to hold a panel of inquiry to determine the basis for these price increases. It is outrageous as gasoline and diesel fuel are not a luxury rather a staple of everyday existance.

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  2. @Panama_Jack / @Onwards and Upwards – Don’t you guys watch what’s happening in the United States? Or, the effects of the middle east crisis? The U.S. gas price has also jump… that means our prices will jump alot higher because we have to pay taxes to have it shipped here. No panel of inquiry is needed – its in the news!

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  3. You mean…..oil isn’t an endless cup we can all drink from with forever with cheap gas prices.

    I am SHOCKED, shocked I tell you!

    why complain? What is the point. Gas is going to get more and more and more expensive. Says the leading researcher, captain obvious.

    Captain Obvious just wonders why people haven’t figured this out for themselves, with all the news and the recent advent of the internet

    *rolls eyes

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