By YOURI KEMP
Tribune Business Reporter
ykemp@tribunemedia.net
Bahamian gasoline prices could take 60 days to decrease in line with the plunge in global oil prices, a top local executive said yesterday.
Keith Glinton, regional manager for Sol Petroleum (Bahamas), the Esso distributor, told Tribune Business: “I think we will have to see how soon it will ripple through. Typically we carry up to 30 days inventory, the industry does.
“We have a pricing mechanism that requires that prior inventories be exhausted before price changes take effect. It’s hard to tell, but my guess would be between 30 to 60 days. That would be my guess. We have to continue to follow this. Remember, what you are seeing is a point and time and not anything that is definitive.”
CNN reported yesterday that oil prices have suffered their biggest fall since early 1991 and the start of the first Iraq war, when the US launched air strikes to start driving the Saddam Hussein regime out of Kuwait.
The drop was caused by a Saudi Arabian production increase as part of its “price war” with Russia following the latter’s threat to leave the global oil cartel, the Organisation of Petroleum Exporting Countries (OPEC).
Brent crude futures, the global oil benchmark, was down 22 percent, last trading at $35.45 per barrel, while US oil is trading at $33.15 per barrel, a decline of nearly 20 percent.
Comments
Well_mudda_take_sic 4 years ago
Gas prices at U.S. pumps change almost instantly. 60 days is absurd because our country does not work off of a 5 week reserve of gasoline, which is why our gas stations usually run low on gas whenever we're hit by a hurricane. 2 weeks at most should be plenty of time for the lower gas prices to work their way through our fuel replenishment and distribution system to the gas pumps. Any longer is just price gouging and greedy profiteering.
Well_mudda_take_sic 4 years ago
And we all know about Sir Snake and his Shell gasoline product when it comes to outrageous price gouging.
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