Shell’s price at the pump has dropped by 41 cents, Freeport Oil Company Limited (FOCOL) President Dexter Adderley told Guardian Business yesterday, announcing the drop as the most significant single fuel price reduction to date.
Yesterday Shell announced that its price at the pump dropped from $6.29 to $5.88.
Gas prices have been steadily declining over the last few months, after hitting record highs across the world in some places.
However, prices rarely make a single drop of almost half a dollar.
Russia’s war in Ukraine has been largely blamed for the extreme rise in gas prices for the better half of the year.
Concerns about the cost of oil rose after Russia invaded Ukraine in February, after which, global oil prices soared.
Russia is one of the world’s largest producers of oil.
This year, the cost of Brent crude and US oil exceeded $100 for the first time since 2014.
Fuel has been one of the largest inflationary items and a cause of inflation, as the cost of shipping and travel increased.
The Central Bank of The Bahamas’ latest Monthly Economic and Financial Developments report revealed the significance of fuel prices on inflation.
“Reflective of the pass-through effects of the increase in global oil prices and supply chain shortages, domestic consumer price inflation – as measured by the All Bahamas Retail Price Index – rose to 4.4 percent during the twelve months to June, from 0.9 percent in the same period of 2021,” the report said.
It seems the worst could be over for now, Bahamas Petroleum Dealers Association (BPDA) Vice President Vasco Bastian said last month.
Crude oil across markets has sustained a price under $100 a barrel in recent weeks, though experts have forecasted continued volatility as fears of a global recession loom.