Gasoline prices continue to climbPOSTED: 03/6/15 1:06 PM
St. Maarten —The price of unleaded gasoline locally has increased slightly again which will go into effect today March 5th according to information from the office of the Minister of economic affairs.
The local price of gasoline has gone up by Naf0.10, making the new price at the pumps Naf 1.931 per liter as opposed to Naf 1.831 per liter. The price to tank up at the pumps fell steadily over the past few months to reflect developments on the international market which saw oil prices at record lows. However, these prices internationally have started a slight increase, hence the slight increase in local fuel prices.
The price of diesel has also risen slightly from NAf 1.430 per liter to NAf 1.534 per liter and that will be effective today, and like the gas prices, this increase also reflects developments on the international market. The price of oil is considerably more volatile than the price of petrol as evidenced by changes in the price of diesel over the past several months being barely perceptible. In a recent CNBC interview, former Shell Oil President John Hofmeister predicted that oil prices could double by the end of the year, which would see motorists shelling out much more to have their tanks filled.
The reason, Hofmeister says, is that the oil companies are masters of the simple economics of supply and demand. “The industry is the best in the world at cutting costs when they have to reduce spending. What’s happening is we’re shutting down drilling rigs,” Hofmeister said during his interview. “Not completing the wells that have just been drilled. And we’re going to eat off the surplus oil out there probably by mid-year.” Looking further into the future, the former oil exec sees prices rising even more by the end of the decade.