British Virgin Islands: The Price Of Fuel Continues To Rise

Simply pulling up and filling up at fuel service stations has cost residents of the Virgin Islands more as the price of gasoline has increased, but as global conditions continue to fuel world-wide increases in the price of oil, local suppliers anticipate that prices across the Territory will continue to climb upwards in coming weeks.

It is anticipated that the high fuel prices will also have an impact on electricity consumers and will be directly reflected in the fuel surcharges, which will mean that the BVI Electricity Corporation is also paying more for its fuel.

Deborah Benjamin is the Country Manager for Sol Petroleum in the British Virgin Islands. Benjamin said in 2007, the Territory experienced probably the highest price spike for gasoline when the commodity retailed for well above $5. Currently, all Sol service stations are retailing gasoline at $4.99 per gallon - more than $1 above the price four months ago. She noted that based on existing trends, the current prices could reach 2007 levels.

"The price for fuel seems to be moving upwards still. It is moving that way largely because of the unrest in the Middle East," Benjamin stated. She further explained that Sol, like many other importers in the BVI, does not control the market prices. "We, like other importers are subject to whatever the price is on the global market. We import fuel, add a fixed margin and resell it like any other importer in the BVI would do with their products," Benjamin stated.

She noted that the dealers all have a fixed margin, which means that all the Sol service stations are retailing at the same price. Benjamin noted that the BVI prices are quite favourable when compared with other countries in the Eastern Caribbean. She noted that there is no 'crystal ball' to tell when prices will begin falling, but noted that usually; the prices tend to increase during the hurricane season due to threats to the Gulf of Mexico region.

PETROLWORLD 03/05/2011