Changes in petroleum prices

Barbadians will be paying a bit less for gasoline and more for diesel and kerosene from midnight tonight.

The retail price of gasoline will be adjusted from $2.91 per litre to $2.78 per litre, a decrease of 13 cents.

Diesel will now be sold at $2.15 per litre, three cents up from $2.12, while the price of kerosene will move from $1.00 per litre to $1.04, an increase of four cents.

Meantime, the retail price of Liquefied Petroleum Gas (LPG) has dropped.

The 100 lb cylinder, which previously sold for $147.68, will now retail at $129.28.  The price of the 25 lb cylinder has decreased from $42.02 to S37.42, while the 22 lb cylinder will now be sold at $33.10, down from $37.14.  The new price of the 20 lb cylinder is $30.09.

The new prices represent decreases of $18.40 per 100 lb cylinder, $4.60 per 25 lb cylinder, $4.04 per 22 lb cylinder, and $3.68 per 20 lb cylinder.

A statement from the government said these adjustments in retail prices are due solely to changes in the CIF (cost, insurance, freight) of these refined products.

15 Responses to Changes in petroleum prices

  1. Richard Johnston January 1, 2017 at 9:45 pm

    Why does Barbados need a government agency with paid employees to determine fuel prices when all they have to do is set maximum price and let the market determine them? Gasoline price controls ended in the US 30 years ago.

    Reply
  2. Hal Austin January 2, 2017 at 3:59 am

    Richard,
    You miss the point. In a small nation-state, with big global and regional regulatory bodies and so-called NGOs having the power and influence, the only thing left for local politicians and civil servants is to control their citizens. Without that there will be nothing left for them to do.
    This also explains the reason why Caricom cannot get off the ground, too much power will go to the centre. Look at Britain with 70 per cent of legislation coming out of Europe; the result is a backlash against the very institution is that best for them.
    It is the little Hitler syndrome.

    Reply
  3. Tony Webster January 2, 2017 at 5:48 am

    @Hal A…very nice, wry, nugget of truth, wrapped up in a crinkly-new 2017 foil cover. I forgive you for such ruff treatment of Adolph – a guy who shares a birth-date wid your humble scribe.

    However, when you bite into your little trifling truffle, you find a really hard nut at the centre: we don’t know what to do wid dem useless politicians…and we doan know how to do widdout dem!

    I wonder how God runs things up there? No politicians in sight…or allowed……but evahbody is Angels, High-Priests, and Gods? How boring…I wonder if things are enlivened…by at least tolerating an Angels trade-union? I dunno nutten-so…but I does pray with increasing frequency, rapidity, regularity, and earnesness…as I see de end up de runway coming up. You?

    BTW…a Very Happy, and Very Healthy New Year to you, and to all such fellow-travellers…

    Reply
  4. Natcho Bizness January 2, 2017 at 7:40 am

    After this change of 13 cents for gasoline, do all Gas Stations really make the change, whose to say they really do. There’s no government official that goes around and checks whether or not the pump has be adjusted to the new price. So after being ripped off by our government because these fuel prices are trash and the actual fuel we receive is trash as well, and as if that is not good enough we then line up to get ripped off by some of the gas stations.

    Reply
  5. Peter January 2, 2017 at 8:39 am

    Hal. I think you misread Richard in your hidden desire to defend the irregularities of this DEM run government. Tony, you’re brilliant. perhaps too much so. Your parables are so airtight, the average person, including those at Barbados Today do not and cannot quite understand you. The bottom line is rather clear though, this admin is regulating the cost of fuel based on how they can escape scrutiny. They are acting as the middle man here and passing it off on CIF. They add the mark-up at their whim and fancy. In other words, they profiteer from this and are answerable to NO ONE. They know that the air we breathe, we depend on fuel heavily. Hal, this has nothing to do with British legislation and Europe. You are applying an old adage to this which says…. ” If you can’t dazzle them with your brilliance, then baffle them with your bull sheet. I kind of agree 100 % with Richard. We do have an abundance of oil un-extracted albeit, but oil price is so low it’ costs more to extract and refine, than how market prices are determined by OPEC. Oil marketers worldwide are seeing hell. Oil trading is no longer a profit center. How do I know this? I work in the financial sector of a large international oil trading corporation. I can go on but I close off here.

    Reply
  6. Grateful Bajan January 2, 2017 at 9:54 am

    What is wrong with Barbadians benefiting for a decrease in International Gas prices or a lowering of the CIF? I give thanks for the decrease. I am thankful.

    Reply
  7. Watchman January 2, 2017 at 10:24 am

    Hi Richard,

    If the government should not be setting a sale price, why would you want them to set a maximum price ?
    Isn’t that what they do now anyhow, set a maximum and arguably minimum price for fuel ?
    I don’t see how your proposal is different from the status quo.

    Market prices ?
    Is that when 3 different gas stations within a mile of each other raise their prices by the same amount, at the same time because a long weekend, or Christmas or because it’s day in the week ending with the letter y ?
    This is the trend I see where I live. I know, we should just stop buying fuel if we dont like the price.

    The collusion runs deeply.
    Look outside of Barbados and see what’s there and how it works, or doesn’t work.

    So instead of the government profiteering if I indulge that paradigm, it’s preferred that some multi millionaire gets the money. Cool, just remember that’s how you want it if you get your way and the accompanying user fees that go along with everything else the taxes on petroleum or rather government profiteering pay for.

    Reply
    • Richard Johnson January 2, 2017 at 11:10 am

      Perhaps I am mistaken. I presume the intention is to prevent stations in isolated locations charging exorbitant prices for fuel, hence the proposal to set a ceiling and let competition take care of pricing. That could be done every 6 months by some secretary instead of a bunch of bureaucrats with nothing else on their table.

      Reply
      • Watchman January 2, 2017 at 2:50 pm

        Can you name any gas stations in an isolated location in Barbados, or even anywhere that can seriously be considered an isolated location in Barbados with respect to travel via a motor vehicle ?

        Surely if any such isolated gas station existed, it would not charge so high as to get no sales. Isn’t that the market deciding, then why would a secretary be needed to adjust pricing every 6 months ?

        It’s too bad people can always see the means to effect efficiencies in government, but not within their own organisations. The same gas stations could join the 20th century never mind the 21st, where self service is typical and only 1 or 2 staff.

        Reply
        • Richard Johnston January 2, 2017 at 8:36 pm

          Thank you for reinforcing my case. I can think of some distant locations like Belleplaine where folks are pretty much trapped because the savings in traveling farther are consumed in the travel. if indeed there are none, why not let the market determine the prices and do without these salaried bureaucrats? I don’t understand your third paragraph.

          Reply
  8. Peter January 2, 2017 at 11:05 am

    Watchman you perhaps don’t figure it out or don’t want to figure it out. What good does it benefit a fuel consuming nation when their government alters the prices to profit at the expense of its people? And that is besides raising and imposing alternate taxes. Yes Gas station owners can create a shortage to carry up gas prices at the pump. It’s price gouging but it’s illegal and the law can take care of that. No government should profit from regulating fuel prices. It’ like stores carrying up the prices for generators and building supplies after a storm. In oil trading, some airline companies purchase fuel in extremely surplus quantities to protect air fare prices. This is where oil traders comes in. The US government stockpile fuel and military making equipment for its military. They bought millions of tons of raw bauxite from Guyana and Jamaica through Reynolds Mines and stored underground and in the Mississippi river during WWII for military aircraft construction. They used Sauganay Lines out of Canada through Reynolds Mines. to transport the ore.

    Reply
    • Watchman January 2, 2017 at 3:08 pm

      Hi Peter,

      I do not understand what is meant by the government profiting at the expense of its people. Every government taxes its citizens. If it was about profit, why bother to ever drop the price when they have a monopoly ?
      Just set the price higher, and make even more “profit”.

      “some airline companies purchase fuel in extremely surplus quantities to protect air fare prices”
      I think this is to ensure and protect their profits, not air fares.

      This whole Ann Rhynd let the market decide paradigm was found wanting very much in 2008. Even the much lauded Greenspan, perhaps her staunchest disciple, conceded that fact.

      I read your post a few times, but I could not follow the other parts and understand the points you were making.

      Reply
  9. Peter January 2, 2017 at 8:59 pm

    Watchman, my friend, Sorry to respond so late. I was dealing with some important overseas issues. Governments profiteering from its peoples whether from taxes or indirectly from levies is very versatile. Because they control things they are liable to do things in an unaccountable manner. Case in point is the additional mobile phone tax. What happened to the over BDS$ 300 million that inexplicably “Disappeared”? Take into account we have an auditor general’s report that no one in this particular administration gives any serious thought to.

    Reply
  10. Carson C Cadogan January 3, 2017 at 8:00 am

    One sided reporting.

    “Barbadians will be paying a bit less for gasoline and more for diesel and kerosene from midnight tonight.”

    “…a bit less for gasoline” 13 cents less,

    but for Diesel “more” not a bit more “…three cents up”, kerosene “…..an increase of four cents”.

    These Journalists really make me laugh.

    Reply
  11. Stanley Searles May 19, 2017 at 11:10 am

    which Government agency in Barbados make the decision to purchase ?

    Reply

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