Fuel Price Mystery Mechanism

The following was extracted from caribbeansignal.com website.

Barbadians should be aware there is a policy by the government to pass on changes in the price of oil to the consuming public at the pump. The impact is that for private and commercial users it will positively and negatively be a cost push effect factor influencing price. Will the government in the interest of transparency publish the pass through calculation that determines price at the pump?

From mid-night February 6, consumers in Barbados paid less for diesel while the price of gasoline remained unchanged. The retail price of diesel dropped from $3.34 BDS per litre to $3.29, five cents or -1.5% less, than the previous month. The price of gasoline remained unchanged at $3.99 BDS per litre (Source: Barbados Government Information Service).

The rest of this post explores this month’s price change in five charts.

Chart 1 Below: Month over Month % Price Variance for Gasoline (2022 Retail Prices).

Chart 3

Read full text @caribbeansignal.com

11 thoughts on “Fuel Price Mystery Mechanism

  1. We are always in reactive and crisis mode.

    Urgent oil drilling mission to help cushion economic blow from escalating Russia-Ukraine conflict
    Article by
    Kareem Smith
    Published on
    February 23, 2022

    A team of oil and gas specialists have been summoned from the Republic of Trinidad and Tobago to assist Barbados with an urgent oil drilling mission, as the country looks long-term at cushioning any likely economic blow from the escalating conflict between Russia and Ukraine.

    Minister of Energy, Small Business and Entrepreneurship Kerrie Symmonds, responding to the news, urged citizens to brace for the possible impact, revealing that the most recent developments have made feared gas price increases “almost inevitable”.

    On Tuesday, following weeks of extraordinary tension between the two countries and their allies, Russian president Vladimir Putin recognised the independence of two breakaway Ukrainian regions and deployed troops to both.

    The decisions prompted a range of sanctions from western allies of Ukraine including the United States of America (USA), the United Kingdom (UK) and the European Union (EU) who are accusing Russia of severe breaches of international law.

    But the sanctions, which include the halting of the Nord Stream 2 pipeline – a key gas pipeline between Russia and Germany, will affect countries that are heavily dependent on imported energy to oil much of its economic machinery, including Barbados.

    And, with Europe relying on Russia for about 40 per cent of its gas, the conflict is expected to drive up demand from other oil-producing nations.

    “The commercial and economic impact of this action can only be measured with the passage of time and there are still a variety of variables which are likely to arise but which are not yet in place, that make predictions very difficult,” Symmonds told Barbados TODAY.

    “It is almost inevitable, however, that this escalated level of tension will result in a further increase in global gas prices and as an energy-importing country we have to gird our loins for the possible impact,” the energy minister added.

    Hours after the news broke on Tuesday, he disclosed that a supply analysis conducted by the Barbados National Oil Company (BNOC) revealed that only 30 per cent of the gas consumed here is locally produced with the remaining 70 per cent imported.

    “To mitigate the effect of this we have brought in a team of specialists from Trinidad and they are at present working with us to perforate some of the old wells with a view to extracting more product,” disclosed Symmonds.

    “I have no clear estimate of any likely gas recovery levels but we do expect that our old wells should be able to increase production by approximately 200-250 barrels a day which will help to blunt the impact of the possible price surge.

    “Beyond that I have instructed both BNOC and NPC to fully assess their operational processes with a view to identifying greater economies. A few recommendations are already in my possession but these will be worked through with the Prime Minister and the Ministry of Finance prior to any further discussion,” the Symmonds added.

    In the meantime, the minister urged citizens to conserve energy as the country continues to monitor what he described as an apparent Russian expansionist agenda in Eastern Europe.

    “In the interim we will remain vigilant and continue to monitor this very fluid situation in Europe. Escalating tension between Ukraine and Russia does none of us any good especially in a post-pandemic environment,” he added. kareemsmith@barbadostoday.bb

  2. @ John
    “Things will probably get worser.”
    That, Sir, …..is THE understatement of the Century so far….

  3. Ukraine in state of emergency
    KYIV/DONETSK – Ukraine declared a state of emergency yesterday and told its citizens in Russia to flee, while Moscow began evacuating its Kyiv embassy in the latest ominous signs for Ukrainians who fear an all-out Russian military onslaught.
    Shelling intensified at the line of contact in eastern Ukraine, where Russian President Vladimir Putin recognised the independence of two Moscowbacked rebel regions this week and has ordered the deployment of Russian troops as “peacekeepers”.
    But there was still no clear indication of whether he plans to follow that up with a massed assault on Ukraine involving the tens of thousands of troops he has gathered near his neighbour’s borders.
    The uncertainty and a mostly incremental first volley of sanctions on Russian interests by Washington and its allies have roiled financial markets. Oil prices reversed earlier losses yesterday. However, global stocks broke a four-day slide and demand for safe-haven assets waned as Western leaders and Ukraine awaited Putin’s next move.
    “Predicting what might be the next step of Russia, the separatists or the personal decisions of the Russian president – I cannot say,” Ukraine’s President Volodymyr Zelenskiy said.
    The 30-day state of emergency could restrict the freedom of movement of conscripted reservists, see curbs imposed on the media and lead to personal document checks, according to a draft text that needs to be approved by Parliament.
    The restrictions will come into force from today.
    The Ukrainian government has also announced compulsory military service for all men of fighting age.
    Ukrainian government and state websites, which have experienced outages in recent weeks blamed by Kyiv on cyber attacks, were again offline yesterday. Ukraine’s Parliament, cabinet and Foreign Ministry websites were affected.
    Moscow denies planning an invasion and has described warnings as anti-Russian hysteria. But it has taken no steps to withdraw the troops deployed along Ukraine’s frontiers.Yesterday, it took down flags from its embassy in Kyiv, having ordered its diplomats to evacuate for safety reasons.
    Washington has described Russia’s actions as the start of an “invasion”, but along with allies has so far unveiled mostly incremental sanctions, saying they were keeping tougher measures in reserve. ( Reuters)

  4. Experiencing low levels at reservoirs in St. Michael
    Article by Barbados Today
    Published on
    February 23, 2022

    The Barbados Water Authority is still experiencing low levels at three of its facilities in St. Michael.

    As a result, customers in the following areas may continue to experience low pressure or water outages until reservoir levels improve.

    St. Michael
    Cave Hill, Lodge Hill, St. Stephen’s, Cane Garden, Jackson, Jackson Terrace, Meadow Vale Heights, Warrens, Warrens Park South, Warrens Terrace, Welches Heights, Bank Hall, Barbarees Hill, Belleville, Black Rock, Bridgetown, Brighton, Carrington Village, Cats Castle, Country Road, Deacons Road, Emmerton, Goodland, Greenfield, Halls Road, Holders Land, Kings Village, New Orleans, Lower Collymore Rock, Lower Richmond Gap, Martindales Road, Nelson Street, Passage Road, Pile Bay, Westbury Road, White Park and surrounding areas.

    St. James
    Cave Hill Crescent, Durant’s Village, Halls Village, Oxnards, Haynesville, Husbands Development, Husbands Gardens, Husbands Heights, Oxnards, Ricks Land, Thorpes, Wanstead, West Terrace, Seaview, Hoytes Village, Clermont, Clearview Heights, Crystal Heights, Edgehill, Halcyon Heights, Husbands, Prior Park, Sunset Ridge and surrounding districts.

    St. Thomas
    Redman’s Village, Melrose, Arthur Seat, Bagatelle Gardens, Bagatelle Park, Arch Hall and surrounding areas.

    Customers in the listed areas who have pipe-borne water are advised to store some to assist.

    The Authority will make every effort to help residents in the affected districts via tanker while the problem persists.

    The BWA apologizes for the inconvenience these service disruptions may cause.

    Source: Barbados Today

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