Gas prices on the rise
Gasoline prices at Esso service stations have risen above the$5 mark.
The trend is expected to be mirrored at other stations in the near future, according to Minister of State for the Environment Phenton Neymour.
Yesterday, the price of gasoline at Esso stations stood at$5.12 per gallon, while prices at both Texaco and Shell remained at$4.70 per gallon.
However, according to Neymour that could soon change.
“The prices are beginning to increase which we naturally expected as a result of the increase of the price of oil on the international market,” he toldThe Nassau Guardian.
“The price of gas is based on the imported price. It also depends on the inventory. So if one organization makes a change that is drastic like that there is a trend that the others will follow suit. However, I have not received any applications from the other two major retailers yet.”
The increase in Esso’s gas price represents a$.35 hike. Previously its gas priced at$4.77 per gallon.
Gas prices have not gone beyond$5 since the summer of 2008 when prices rose to nearly$6 per gallon on New Providence.
The price of oil on the international market rose above$100 per barrel this week.
Analysts have predicted further price increases.
During his mid-year budget statement last month, Prime Minister Hubert Ingraham pointed out that the risks associated with price increases in oil and commodity prices are rising in light of developments in the Middle East and ongoing upward pressures on world food prices.
Ingraham said the government will have to closely monitor such trends as they will have clear implications for domestic gasoline, electricity and food prices, as well as the government’s fiscal position and the broader economy.
He added that both the private and public sectors will need to implement conservation measures to minimize the impacts.