Published On: Fri, Sep 7th, 2018

Local price oil products follows world trends

CuroilWILLEMSTAD - The Curaçao tariffs for fuel products, which are adjusted monthly by regulator Bureau Telecommunication & Post (BT & P), follow the fluctuations on the international energy market.

The local government, the energy company Curoil and the Supervisor BT & P exert no influence on these fluctuations. Prices are adjusted on the basis of predetermined procedures in which each authority has its own responsibility. The sometimes prevailing view that the tariffs can be arbitrarily adjusted by these bodies is therefore incorrect.

Guideline

With the regulation of fuel prices, they adhere to the Tariff Regulation for Fuels in 2011, which sets out the components of fuel prices and how prices are adjusted.

The end-user tariffs, after calculation by the BT & P and on the basis of the advice issued by them, are finally determined by the Ministry of Economic Development on a monthly basis, subject to the approval of the Council of Ministers.

Purchase price and Margin Curoil

The 'Purchase Price' and the 'Margin Curoil' are two important components that are periodically adjusted. The purchase price is the price that Curoil pays to the supplier of the fuels and is also based on international market prices.

The information that Curoil provides monthly for this purpose is also tested by BT & P against the international market development. The BT & P then advises the government on the maximum price of the various fuel products. The Purchase prices that apply in a particular month are therefore based on Curoil's purchase invoices of approximately two months before.

The Margin Curoil must cover all other costs of Curoil for the distribution and delivery of the regulated fuels. For this, the BT & P annually assesses information submitted by Curoil and issues advice to the government.

This also includes the resources needed to guarantee the delivery of fuel to Curaçao: hence the adjustment of the Margin Curoil in September 2018.

Finally: A comparison of the development of oil prices on the international market with the development of the regulated price of Mogas on Curaçao shows that both prices have been rising since February 2018. The increase started with regard to the world market even from July 2017.

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