The Department of Consumer Affairs (DACO) reported this morning an average range in the price of regular gasoline between $1.17 and $1.20, figures that set a new record in Puerto Rico, since never in the history of consumption on the island had that liquid been sold at such a cost.
The director of the agency’s Economic Studies Division, Hector Roman Maldonadoconfirmed to The new day what ishe highest price at the pump that regular gasoline had been sold for was $1.15 and it occurred in 2014, when Russia annexed Crimeaa territory that until then was Ukraine.
“This is the first time we have recorded prices like these. (The cost of regular gas at the pump) had been between $1.15 and $1.16 for 2014, but we had never consistently been above $1.20.”The official said by telephone.
The main reason why the price rose from yesterday to today, explained Román Maldonado, is that the acquisition cost (which is the price at which wholesalers buy the liquid) rose 11.5% in the past five days.
Asked regarding what promotes the cost increase, the economist pointed out that the main cause is the war between russia and ukrainealthough the low supply of oil exporters, as a result of the conflict, also affects international markets.
“Today’s prices are consistent with the fluctuations that the market has had. At this particular moment, we are seeing volatility in the market due to the fact that the European Union decided to place an embargo on all Russian oil products and their derivatives. That is what causes European companies to get out of that fuel they have and monopolize the rest of the market,” said Román Maldonado in reference to the increase in fuel demand.
“Probably, until there are strong measures from the countries that export oil -which are the ones that can increase supply- the price (of gasoline) will continue to increase”he warned.
The cost of regular gasoline is not the only one that woke up today above a dollar and twenty cents. The price range at the pump for premium gasoline, for example, is between $1.23 and $1.30, while diesel fluctuates between $1.25 and $1.53.
On the possibility that the costs of fuel derivatives continue to rise, the official acknowledged that it may be a reality, although there is no precise time for how long it can be extended.
“We know that fuel will still be expensive for a while and from DACO we will do everything in the legislation so that the changes in the acquisition prices are reflected in the costs of gasoline in Puerto Rico. In the next few days, there is still going to be some volatility to the upside until there is some relevant news, whether it is the end of the war, whether Iran returns to the market… but all that is part of a larger spectrum that is out of control immediately from anyone“, Held.
The sustained increase in prices occurs despite the fact that the order to freeze gross profit in the distribution of gasoline, diesel and liquefied gas, had an extension of its validity from today, May 7, until Saturday, May 2. July 2022.
Furthermore, the governor Pedro Pierluisi signed last Tuesday the measure that converts into law a moratorium on the gasoline tax, known as the “crudita”, for a period of 45 days, but its entry into force does not have an upcoming date either until the Fiscal Oversight Board (JSF) give the go-ahead to do so.
However, even if the “crudita” enters into force and, therefore, the tax is suspended, its impact will not be immediate on the prices of fuel derivatives, while its result will depend on the behavior of the oil market at the international level. international.
“If (the crudita) enters into force, that alters the formula downwards. With the crudita there are three scenarios: if the purchase price (of fuel) rises and the price is reduced, then it is lightened; if the acquisition cost stays the same and the crudita goes into effect, they are automatically four cents less; and if the acquisition price falls and the crudita takes effect, it will be more than four cents lower. Any relief mechanism is welcome”, explained Román Maldonado.
Those consumers who want to file a complaint with the DACO or report the sale of gasoline with prices outside the range recommended by the agency can write to the confidences section at www.daco.pr.gov or to the “DACO in your favor” mailbox on Facebook.
