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).
From mid-night July 7, consumers in Barbados paid more for diesel and less for gasoline. The retail price of gasoline fell from $3.88 BDS per litre to $3.87, a decrease of one (1) cent / -0.3% from the previous month. The retail price of diesel rose from $3.10 BDS per litre to $3.12, an increase of two (2) cents / 0.6% from the previous month (Source: Barbados Government Information Service).
The following articles posted by fellow blogger over at caribbeansignal.com, separating signal from noise – Barbados Underground
Barbados Fuel Price Change December 2018
From mid-night December 2 consumers paid less for gasoline and diesel. The retail price of gasoline fell from $3.91 BDS per litre to $3.71, 20 cents / 5.1% less. The retail price of diesel fell from $3.20 BDS per litre to $3.17, 3 cents / 0.9% less (Source: Barbados Government Information Service).
DeLisle Worrell: The Threat of Barbados Dollar Devaluation Remains – The Threat of Barbados Dollar Devaluation Remains
Prime Minister Mottley’s unprecedented achievement in securing financial support from the IMF, the Interamerican Development Bank and the Caribbean Development Bank, has averted an imminent threat of devaluation. However, even though the risk of immediate devaluation has lifted, it has not gone away. Loans from the international financial institutions have bought the Barbados Government some time; Government must use this breathing space to negotiate a mutually satisfactory agreement with holders of US dollar-denominated bonds. In the absence of debt restructuring which is agreeable to the holders of those bonds, the threat of devaluation reemerges in three years’ time.
Barbadians continue to be intrigued by the rollercoaster and out of whack local market position of fuel prices compared to regional markets. With world oil price edging north further interacting with the effect of the NSRL, 2% FX fee and so on, it is anticipated the local consumer should anticipate a hike in the cost of living (already high) at the Yuletide period therefore curbing consumer consumption and stemming the outflow of forex. Since Caribbeansignal.com has posted the analysis below BU has information that prices will increase from this weekend – Barbados Underground
If past data is any indicator of future events, then Barbadians should expect a change in the price of fuel within a few days.
The price of fuel (gasoline and diesel) has changed every month – and usually within the first two weeks of every month (see table below). Of the 10 price changes recorded for 2017 so far, gasoline was increased 6 times and diesel was increased 6 times.
2016 also showed similar changes (see table below). In total, I counted 11 changes in fuel prices for the year (including one in November 2016). 6 of them were increases in gasoline and 6 were increases in diesel as well.
The regularity of price changes should not be surprising, as the Barbadian Government has said in the past that they will be adjusting fuel prices on a regular basis.
Feel free to share the data, but please remember to list caribbeansignal.com or Amit Uttamchandani as the source.
With oil prices recently declining below the $110 level, it is not all that surprising to find that gasoline prices are following suit. Over the past two months, the average US price for a gallon of unleaded has declined over 40 cents per gallon. While this is welcome news, gasoline prices are still higher in inflation-adjusted terms than at any point prior to 2008 - Source - U.S. Energy Information Administration
Barbadians have started to breathe a deep sigh of relief at the news that world oil prices have tumbled from the $150.00 per barrel to $100.00 in recent days. Several reasons have been given by the market analysts but at the top of the list is a weakened demand caused by slowing down in global economies. Whatever the reasons are the Thompson government would be urging the agency responsible for importing oil into Barbados to button as many future contracts as resources would allow. The objective would be to create a buffer to the external shocks created by volatile oil prices. This would have the affect of giving the government time to do its work.
The last eight months has been a rough initiation!
The Thompson government should not celebrate too quickly because there is news surfacing that OPEC, the oil cartel responsible for producing 40% of the world’s oil maybe about to make a decision to cut back production to stop the price of a barrel of oil falling below $100.00. This comes against the background of oil producing countries and the oil refiners having earned billions of dollars in recent months. The greed is enough to make anybody sick.
Lord come for your world!
The Thompson government has been saying the right things about the need to create a viable energy policy, so far we have not had the feeling based on what we have seen that any major initiative is underway. BU appreciates that there is enormous research required to support a decision to wean Barbados away from the tentacles of fossil fuels and the several interest groups that feed from it. But doesn’t commonsense dictate that we must and soon?
While Barbadians revert to old lifestyles caused by falling oil prices, some of us will continue to offer our concerns about the reluctance of Barbados to fully engage a renewable energy policy. Having said that we find the following article which appeared in the London mail very interesting.Continue reading →