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Oil Price Drops to 4-Year Low but Gas and Diesel Prices Continue to Rise in Barbados

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Crude Oil Price (October, 17, 2014)
Crude Oil Price (October, 17, 2014)

The Wall Street Journal reported on 13 October 2014 that oil price has dropped to a four year low and with demand expected to decline as winter approaches – the decline is expected to continue. There is also a glut exerting pressure on the price permitting analysts to comfortably predict the trending down of the oil price should continue.

The near simultaneous announcement (not yet public) in Barbados that the price of gasoline and diesel will increase slightly at the pump effective midnight on the 19 October again raises questions about the pricing mechanism the government is using to determine the price of gasoline and diesel. The price of gas will increase from $3.50 to $3.60 per litre and diesel expected to move from $2.75 to $2.90. Thankfully the price of kerosene will dip from $1.75 to $1.70.

When will Barbadians and businesses begin to benefit from a drop in the price of oil now at a 4 year low?

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50 responses to “Oil Price Drops to 4-Year Low but Gas and Diesel Prices Continue to Rise in Barbados”

  1. Caswell Franklyn Avatar
    Caswell Franklyn

    The answer to your question is when we get a competent non corrupt Government.

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  3. caribcanadian Avatar
    caribcanadian

    Gas prices have gone down in Montreal. I was so surprised to hear that the other day. It’s practically unheard of even when oil prices have decreased in the past. . For years people, up this way, have questioned the pricing of gas since past decreases of oil where not being reflected in the price at the pump. It never has been explained or, at the very least, the explanation made no sense. Surprise, surprise. We’ll see how long it lasts.

  4. caribcanadian Avatar
    caribcanadian

    @Caswell Franklyn | October 18, 2014 at 9:42 AM |
    The answer to your question is when we get a competent non corrupt Government.

    +++++++

    After all the corruption, which has/is being perpetrated and exposed all over the world from times gone by straight up to today, you still believe that a ‘non corrupt governments’ exist and/or is possible?

    Humans make up governments and humans are easily corrupted.

  5. Caswell Franklyn Avatar
    Caswell Franklyn

    Well at least the corruption should not be absolute.

    >

  6. HAMILTON A HILL Avatar
    HAMILTON A HILL

    I thought previously that I had understood what was meant by the saying that people get the government they deserve.

  7. Pachamama Avatar
    Pachamama

    @ David
    The fall in oil prices and its unresponsiveness in local pricing could be caused by factors that include the fairly recent price decline, the nature of the petroleum market locally and the desire by some to maintain an unhealthy time lag between source price reductions and its representation at the pump.

  8. David Avatar
    David

    @Pacha

    It is why the power that be needs to be more transparent with the price mechanism used. It impacts too many lives and what about planning by businesses? Energy does make up a sizable chuck of the expense.

  9. Colonel Buggy Avatar
    Colonel Buggy

    The Land Tax bills are now out,and I am seeing an increase of some 36% over last year’s.

  10. Colonel Buggy Avatar
    Colonel Buggy

    And do not expect it to go down either, when SOL or The Trinis take over the Oil Terminal. Like Emera and others, we must guarantee them a big profit on their investments.

  11. Hants Avatar
    Hants

    I believe the prices set by the Government reflects the price of oil at the time of bulk purchase from suppliers.

    The price on the stock markets is only relevant if oil was purchased on that day at that price.

    Moneybrain should be able to explain.

  12. David Avatar
    David

    @Hants

    Forget the theory, can Barbadians say that price at the point is at an all time low in 4-years OR that at least it has been trending down? Where is the evidence.

  13. Hants Avatar
    Hants

    David as you know I do not live in Barbados nor do I invest in the stock market.

    All I suggested was what seemed logical to me.

  14. Pachamama Avatar
    Pachamama

    @David
    We have a monopolistic / oligopolistic environment where a government seeking tax reveniues and a few players determine price, quality etc. So free market responses are unlikely to help customers immediately or at all. People are going to give you all kind of excuses that the stocks were bought at the higher price when we know that we always pay the higher price longer when world market prices have been falling but more quickly pay the higher price when supplies are tightened.

  15. Pachamama Avatar
    Pachamama

    In other words energy has always been a rip off and our government have been part of it.

  16. caribcanadian Avatar
    caribcanadian

    Hants | October 18, 2014 at 12:17 PM |
    David as you know I do not live in Barbados nor do I invest in the stock market.

    All I suggested was what seemed logical to me.

    +++++=

    Your suggestion is what has been given as a sort of explanation when powers that be have been questioned where I am in Montreal. However, if such is the case then after periods of low oil prices one should expect to see the effects of lower costs at the pump at some point. Never seen that happen until just the other day. So…the theory does not match reality. Such is the reality, in many spheres, of this world we live in.

  17. Hants Avatar
    Hants

    @ caribcanadian the same happens in Toronto where the price at the pump is not always reflective of the stock market price for oil.

    However this recent drop on the market seems to be also reflected at the pump

    http://www.cbc.ca/news/business/gas-prices-at-5-year-low-and-dropping-1.2799300

  18. caribcanadian Avatar
    caribcanadian

    Hants | October 18, 2014 at 12:47 PM |
    @ caribcanadian the same happens in Toronto where the price at the pump is not always reflective of the stock market price for oil.

    However this recent drop on the market seems to be also reflected at the pump

    http://www.cbc.ca/news/business/gas-prices-at-5-year-low-and-dropping-1.2799300

    +++=

    Exactly what I pointed out: that it was strange to see this happening given such has not been the case in the past.

  19. lawson Avatar
    lawson

    if oil was pumped directly from the big drum into your car you may see a quick drop but it has to be refined with all that goes with that but if anybody is getting a break there must be a glut.

  20. caribcanadian Avatar
    caribcanadian

    lawson | October 18, 2014 at 1:01 PM |
    if oil was pumped directly from the big drum into your car you may see a quick drop but it has to be refined with all that goes with that but if anybody is getting a break there must be a glut.
    +++

    I guess this is the first time that there has even been a glut….Hardly likely.

  21. caribcanadian Avatar
    caribcanadian

    correction: ever been a glut

  22. Colonel Buggy Avatar
    Colonel Buggy

    If there is a glut , China is standing by to purchase all of the excess,

  23. David Avatar
    David

    @Hants

    What we have in Barbados is a government who has been lose with making promises and frankly the average citizen does not trust what the government is doing.

  24. Dompey Avatar
    Dompey

    I have noticed here in America, that there isn’t any Unilateralism in terms of gas prices in many states. In one part of the state gas prices could be at the high end of the spectrum and at the other end quite opposite spectrum. And this phenomenon is applicable from state to state throughout the United States I have noticed also.

  25. John Hanson 1781-1782 Avatar
    John Hanson 1781-1782

    Most agreements for fuel is by a one year contract that they buyers maybe locked in to, So depends on the end date of the agreement will they show a drop in price.if passed on to the public

  26. Hamilton Hill Avatar
    Hamilton Hill

    @ Dompey. ..There is a definite downward trend of gas prices all across the country. The variance you are seeing is based on the individual state taxes, but yes we have been paying less for a few weeks very well.

  27. Dompey Avatar
    Dompey

    John Hanson

    Are you speaking domestically or internationally? Or is this some kind of a rule which applies to the International Commerces?

  28. Hamilton Hill Avatar
    Hamilton Hill

    Even if some form of empirical evidence surfaced that showed a blatant rip off Bajans would bitch for a minute, then its back to business as usual. We like it so!

  29. Dompey Avatar
    Dompey

    Well that’s great to hear Hamilton because for a moment there I seriously contemplated the notion of take public transportation; at my own peril of course. I saw White folks here riding their bikes to work; risking life and limb just to save a butt. Only in America; you can’t write this stuff brother.

  30. caribcanadian Avatar
    caribcanadian

    Hamilton Hill | October 18, 2014 at 6:46 PM |
    Even if some form of empirical evidence surfaced that showed a blatant rip off Bajans would bitch for a minute, then its back to business as usual. We like it so!

    True of many places in the world. Apathy.

  31. Dompey Avatar
    Dompey

    Hamilton are you insinuating that most Bajans are stupid? I don’t know about that, but I would hazard a guess that after being enveloped on a small island for one’s entire life, it’s probable.

  32. John Hanson 1781-1782 Avatar
    John Hanson 1781-1782

    Dompey | October 18, 2014 at 6:40 PM |

    the cost of fuel is not as bad as it is at the pump, The taxes, vat, and greed is Barbados DLP looking to fill the gap in fraud, As they charge more they make less money.. Money can be made by people moving and not standing still,
    Government will bring in less and less taxes as time goes by, SO even as drivers we stop driving and the road tax we have 3 cars right now sitting .
    One car is 1600 road tax ,another one is 900 and the last one is 401 a year.total of about 2901 and lets not forget insurance , So all the money is off the market and that have nothing to do with fuel.,
    So we saving good money just paying internet, food, light and water , cut the grass, Money only spend to live .
    DLP will keep going on till the election time , We boycotting till then .and we not voting BLP so no one get happy.

  33. John Hanson 1781-1782 Avatar
    John Hanson 1781-1782

    Better ask SOL what the agreement they have with SHELL

  34. Dompey Avatar
    Dompey

    Now, let’s stay focus on the topic before deliberation, or else we find ourselves deep in the sea-less shores of outer- space. David, I spoke about Digression and Deflection earlier, and how it is inevitable even under a well regimented discussion.

  35. Dompey Avatar
    Dompey

    John Hanson, I hear what you’re saying because I now pay 900 annually for one car and that is with my 15% veteran’s deduction.

  36. Colonel Buggy Avatar
    Colonel Buggy

    @John Hanson
    Added to the above cuts, many vehicle owners are now skimping on routine maintenance and repairs, thus , rightly or wrongly, saving that burdensome expense of Value Added Tax, on lubricants, filters , replacement parts and services.

  37. John Hanson 1781-1782 Avatar
    John Hanson 1781-1782

    Its just to much money to drive on a small island , bus , walk bike and eat better , can take no one to work for no one is working now. If we drive , we have to eat before we leave home , See the price of milk and ice cream ,
    we can buy KFC in America and resell in Barbados and make money,

  38. HAMILTON A HILL Avatar
    HAMILTON A HILL

    @ Dompey…. You have stumped me with your comment about being stupid after being enveloped on a small island. Some of the dumbest I have come in contact with went through a process we call migration. We could jump up and shout BLP,DLP or what ever P we care to for as long as we care to. There is a power base in Barbados that has a direct line to those we choose to do our bidding. Politics is a pathway to riches for those involved, their families, friends and the few lackeys that cling to their coat tails. All this at the expense of the average Barbadian. This is why my first cousin “Waiting” in the face of all that has gone on still feels the need to post the sh–e he does. This government will change and the lackeys from the other side with cap in hand will replace ” Waiting” and “ac” defending any and everything done as long as the crumbs from the masters’ table fall their way.

  39. John Hanson 1781-1782 Avatar
    John Hanson 1781-1782

    HAMILTON A HILL | October 19, 2014 at 8:08 AM |

    give someone else a try , it can not get any worse with a new government .
    vote 3 party 4th party but no lawyers or family member of the old parties,
    I sure many of the old guard must cant sleep at night by the fact some one or another party might get a chance to prove they all crooks with thing to hide as lawless Ministers, the closer we get to election time they who know will pull away from their party members , but dont be fooled they crooks also.

  40. David Avatar
    David

    Oil Price Drops on Oversupply

  41. caribcanadian Avatar
    caribcanadian

    HAMILTON A HILL | October 19, 2014 at 8:08 AM |
    @ Dompey…. You have stumped me with your comment about being stupid after being enveloped on a small island. Some of the dumbest I have come in contact with went through a process we call migration. We could jump up and shout BLP,DLP or what ever P we care to for as long as we care to. There is a power base in Barbados that has a direct line to those we choose to do our bidding. Politics is a pathway to riches for those involved, their families, friends and the few lackeys that cling to their coat tails. All this at the expense of the average Barbadian. This is why my first cousin “Waiting” in the face of all that has gone on still feels the need to post the sh–e he does. This government will change and the lackeys from the other side with cap in hand will replace ” Waiting” and “ac” defending any and everything done as long as the crumbs from the masters’ table fall their way.

    +++

    Isn’t that the truth about politics, power and wealth. Year in, year out, Party X in or Party X out same script same results…election in…election out…

  42. John Hanson 1781-1782 Avatar
    John Hanson 1781-1782

    US of A will soon be the number one supplier of fuel again because of fracking,and they have no need to be in the middle east for that was the reason to be there in the first place , They care not about religion nor people only profit. Prices may drop as low as 77usd per barrel,

  43. Dompey Avatar
    Dompey

    Johnson Hanson

    If the sole objective of the Bush Administration was to invaded Iraq for its Oil: then tell me why Oil prices kept on an upward trend for the past five years? One would anticipated the opposite trend given the surplus of Oil now in America’s possession. If you would have said that: part of the objective of the Bush Administration was to invaded Iraq, and while there, used some of its Oil resources to financial the war which cost the American taxpayers a hundred million dollars a week. Then I would have probably brought into your argument.

  44. LOOK Avatar
    LOOK

    http://www.nytimes.com/2014/10/18/business/energy-environment/us-oil-boom-shows-no-signs-of-slowing-down.html?_r=0

    Pacha,

    Know it pains you to hear or even have to read this.

  45. Colonel Buggy Avatar
    Colonel Buggy

    And from midnight last , the prices of Petrol and Diesel at the pumps were increased.

  46. just asking Avatar
    just asking

    Oil on the international market has been selling below $80:00 US a barrel, but our petrol at the pump has gone up again, plus diesel, so we in Barbados don’t expect any drop in our cost of living. We are soon going to have to pay at the hospital for services rendered to the public; and don’t expect the municipal tax to be taken off any time soon, we will be paying it next year again as well. What a lot of drunken sailors in government.

  47. Dr Love Avatar
    Dr Love

    Its the first symptom of deflation, commodities become cheaper, money becomes more valuable, Gold price sinks.
    Market forces deployed.

  48. Dr Love Avatar
    Dr Love

    We are entering a period of deflation, you will now have to think in opposites.

  49. xfiles Avatar
    xfiles

    Barbados need to switch to renewable energy (solar/wind) & use electric cars & buses. Dependence on oil will keep us in debt for eternity. This fall in prices is only temporary, when oil falls below a certain level OPEC will cut production & prices will rise again.

  50. Hants Avatar
    Hants

    Down and down again.

    When will bajans get a break.

    Saudi slashes January oil prices for Asia, U.S

    https://finance.yahoo.com/news/saudis-steeply-cuts-oil-prices-141135044.html

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