Published On: Tue, Jun 30th, 2015

Asjes: No direct relationship between crude and gas prices

Ivar-Asjes-10WILLEMSTAD - The new prices for gasoline and diesel are not the result of the price of crude oil on the world market. Refined oil products have their own price based on supply and demand. This is according to the price regulator BTP&U.

Because the fuel is calculated afterwards, which is followed by a monthly correction of the price. Therefore, there is no direct relationship between the current price of crude oil and the price at the gas station.

Starting today, the price of gasoline is 29 cents more, while the price of a barrel of oil on the world market is below 60 dollars. Oil is an essential raw material for making various refined fuel products such as Mogas 95 (gasoline) and Low Sulfur Diesel. In that sense it means there is a relationship between the price of oil and the price of refined products, according to BTP&U. The world prices for both refined fuel products, as determined by Platts (an independent organization that tracks the average standard price of energy products), as well as for petroleum are also tracked monthly for review by the BTP&U.

Although the development of the oil price is an important factor in the evolution of prices of refined products, this development is not always right, says Eddy Rhuggenaath of BTP&U. According to him, the refined fuel products have their own price development because it is determined by the demand for and supply of petrol for example. As petrol price developments may differ from the price movements of a barrel of oil. Moreover, according to EDP that the purchase price of Mogas 95 at this time is relatively high.

Fuel prices in Curacao have an administrative delay of about two months. BTP&U determines the rates of fuel on the basis of purchase invoices of the Curaçao Oil Company (Curoil) two months back. That means that the BTP&U is two months behind with oil price developments on world markets.

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