Aug. 11, 2006 – "Gas prices in the territory have never been this high," according to Licensing and Consumer Affairs Commissioner Andrew Rutnik. And there seems to be no end in sight.
As of Friday, gas prices on St. Croix are up to $2.99 for regular, $3.29 for premium and $3.09 for diesel.
Rutnik said part of the reason of the increase at the pumps is due to the uncertainty of the refinery capacity in the Middle East because of the ongoing conflicts.
Adding to the problem is the large consumption of fuel by consumers. "Everyone wants to drive an SUV," he said.
The spike in gas prices did not come as a shock to most residents because Hovensa announced on Monday that it was raising the rack rates.
Rutnik said the big oil companies – Exxon Mobil and Chevron – are benefiting from tight supply and heavy demand that sent crude oil prices higher on world markets. He said the local gas stations are making about a 55 cents per gallon profit.
In March 2005 the Licensing Department rescinded its Gross Profit Margin order that placed a profit cap of 30 cents per gallon of gasoline for wholesalers, and 35 cents on retailers, after Texaco and Esso Virgin Islands filed suits against the V.I. Government contesting the order (See "Consumer Department Removes Cap on Gas Profits").
Rutnik said that the suit was pending in District Court, and that nothing could be done "in the absence of a court decision."
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