The Island Regulatory and Appeals Commission announced today that wholesalers have been directed to decrease gasoline prices in their dealer and consumer schedules by 5.0 cents per litre (cpl) effective 12:01 a.m. on Thursday, August 24, 2006. The current prices for other petroleum products will remain in effect.
Pump prices for regular unleaded gasoline at self-serve outlets will now range from 108.1 cents per litre to 109.7 cents per litre.
In announcing the price change, the Commission indicated that the sustained fall in gasoline spot market prices over the past number of days affords the opportunity to lower gas prices at this time. Commission Chair, Moe Rodgerson, attributes the fall in market prices to a number of issues including the apparent resolution of hostilities between Israel and Lebanon, indications of an economic slowdown in the U.S and favourable inventory builds accomplished over the past few months. Spot prices for distillates, which include furnace oil and diesel, however, have been edging upward over this same period. As a result, the market remains unpredictable and issues such as the ongoing geopolitical tensions concerning Iran’s nuclear enrichment activities or the potential for weather–related damage to oil producing and refining regions could result in immediate upward pressure on market prices.
The Commission’s next scheduled price adjustment will be on September 1.