Antrobus predicts higher fuel costs

POSTED: 03/3/11 12:19 PM

St. Maarten – General Manager of SOL Antilles David Antrobus has predicted that fuel prices will rise higher because of the ongoing conflicts in the Middle East. The unrest in that region is causing fluctuations in the price of crude oil, the base of all petroleum products.
“The conflict in the Middle East has caused a rise in the world fuel prices. A prime example is the rise in the world prices for refined products within the last week, has been on an average of a 10 percent increase,” Antrobus has said.
The 10 percent increase equates to US $0.26 per gallon in some cases. The price of crude has climbed as high as US $100 and then come down to just a little bit below this amount. The prices of crude on the world market were US $ 98.00 per barrel on Monday and it is expected to continue to fluctuate during this week. Consumers should note that the prices they pay at the pump depends on when the oil is purchased. If it is purchased when the crude costs more, they’ll see that at the pump. The same applies at the moment the fuel is purchased at a lower price.
“Once we receive the product at a higher price the increase should be visible at the pump shortly afterwards. The increase is not done automatically,” Antrobus said.
The prices of the fuel at the pumps were increased on February 11 and it is expected to go up further with this situation in the Middle East. Since the last increase, the prices of gasoline and diesel went up by 15 percent and six percent respectively and there is no way of knowing when this situation will become stable. Although some of the crude is from Trinidad and Tobago, the majority of the crude oil comes from the Middle East and as a result it will have some effect on the refined product at the pumps. It is because of these facts that the prices of fuel has fluctuated. Prices spiked on Wednesday last because of the unrest in Libya considerably reducing their crude production. The prices fell back slightly on Thursday and Friday after Saudi Arabia decided to increase production and make up for the shortfall.

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