Low oil prices on the international market have left Barbados with an abundance of the commodity in storage.
Chairman of the Barbados National Terminal Company Limited (BNTCL) Alex McDonald said today that one of the downsides of international oil prices being at the current “low” is that the country had to store a lot of oil here. He noted that oil is now at $45 per barrel.
“We can now start to profitably sell oil again although at that price it is still not a big profit to us. But whatever price we have to pay we pay for the refined product and then we pay the insurance, the freight, and then we also pay a premium for the small order that we make. We place a very small order and so in the world market you also have to pay a premium for that order so it is the world price plus the premium,” McDonald said.
The chairman made the comment to members of the media today following a presentation of face masks made by three statutory corporations which fall under the Ministry of Energy to primary schools, at the Ministry of Education.
Gasoline prices in Barbados are below BDS $3. The last price adjustment made two days ago saw gasoline dropping from $3.09 per litre to $2.80 per litre, and the price of diesel decrease by 23 cents, from $2.52 per litre to $2.29 per litre while kerosene moved from 73 cents per litre to 63 cents per litre representing the largest drop in prices for this year.
Minister of Energy Wilfred Abrahams has also assured the public that as long as the price remains low on the international market the local consumer will benefit as Government passes on any cost savings.
“But equally, when it corrects itself on the world market then Barbadians can expect to see it go back up. But there is no greed nor malice on the part of the oil company in the Barbados, the ministry, or the Government.
“It is simply a set formula that reflects the highs and the lows. Barbadians were saying when are we going to see the low prices reflected? We are seeing it reflected all now,” Abrahams said.
anestahenry@barbadostoday.bb
