Texas bad weather, devaluation behind major jump in fuel prices – Petrojam
Petrojam is reporting that the major jump in fuel prices this week is due to supply issues arising from the bad weather in the United States and the fall in the value of the local currency.
The state-owned oil refinery explained that severe and sustained winter storms in Texas have forced the full or partial closure of several refineries and the inability of ships to operate.
This, it said, has resulted in a significant reduction of finished products to the market.
According to Petrojam, the supply disruption has triggered an extraordinary increase of 12% in the US Gulf Coast Reference price per barrel, which is the main input in determining its ex-refinery price.
It said that this situation, coupled with the devaluation of the Jamaican dollar, has led to increases in the refinery billing prices effective Thursday, February 25, 2021.
Gas prices moved up by $4.50 and automotive diesel oil, kerosene and propane cooking gas all went up by $3.06.
Butane increased by $2.97.
On the local foreign currency market today, the US dollar closed at $152.55, the pound sterling ended trading at $215.80 and the Canadian dollar closed at $121.90.
Petrojam says it continues to monitor the situation in the US Gulf Coast.
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