The Island Regulatory and Appeals Commission announced today that wholesalers have been directed to reduce gasoline prices in their dealer and consumer schedules by 10 cents per litre, effective 12:01 a.m. Saturday, October 22, 2005.
Pump prices for regular unleaded gasoline at self-serve outlets will range from 98.8 cents per litre to 100.4 cents per litre.
Heating fuel and diesel oil prices will not be adjusted at this time.
In announcing the price reduction in gasoline, Commission Chair, Moe Rodgerson, indicated that diminished market concerns over supply issues, the continued recovery of Gulf of Mexico oil industry infrastructure and the recent release of government and industry reports indicating dramatic reductions in consumer consumption patterns have resulted in significant reductions in crude and gasoline product pricing. “While the market is far from stable, we appear to be returning to pre-Katrina pricing levels at least as far as gasoline is concerned,” said Rodgerson.
Rodgerson noted that a desired goal of regulation is price stability. For the benefit of both consumers and the industry, the Commission will return to stability in its price setting mechanism. To that end—and for the remainder of the year—the Commission will move to scheduled price adjustments on the 1st and 15th of each month. In January of 2006, the Commission will revisit the issue of price-adjustment frequency and will, at that time, consider returning to a monthly adjustment process.
“We continue to recognize the anxiety caused by the major price spikes this year, and we appreciate the challenges it has created for consumers and the industry. The Commission continues to focus on its responsibility to determine just and reasonable prices for both consumers and licensees.”