Romelio Maduro: Drop in crude prices does not mean immediate drop for G.E.B.E.POSTED: 01/15/15 2:20 PM
St. Maarten —The drop in crude pricing does not mean that local utilities company G.E.B.E. will have a drop immediately because there is a delay in that process, according to G.E.B.E.’s managing director Romelio Maduro, who explained that G.E.B.E.’s fuel prices are not determined by G.E.B.E. but by the Eastern Caribbean Posting (ECP).
A number of questions have been raised locally as to why the drop in oil prices internationally has not been reflected in Gebe’s bill to its consumers. Maduro addressed the issue via press secretary Michael Granger.
“G.E.B.E. fuel supply is provided by SOL. The pricing is determined according to a specific pricing standard. In many cases, many fuel supply agreements work with Platts but in G.E.B.E.’s case it is Eastern Caribbean Posting. All of our fuel prices are according to this posting and besides the posting price, there are additional costs to getting the product here: insurance / freight rate / marketing differential,” Maduro explained. Platts is the international firm tracking energy prices over the globe.
“The main point should be: we cannot compare gasoline with fuel oil or gas oil.
One other important point: with gasoline the price drop is immediate, depending when it was ordered. SOL has their tanks and the price is determined when this was ordered and do not forget the consumers pay their G.E.B.E. bills at the end of the month (post payment), so this will be reflected 1 month later. Last but not least, the drop in crude pricing does not mean that we will have a drop immediately for there is a delay in that process.”
He added that the posting used in the Caribbean is Eastern Caribbean Posting which consists of Petrotrin (Trinidad and Tobago) posting / Shell West posting / Chevron posting. According to Maduro most fuel Supply agreements includes that the price will be determined by the LCP (Lowest Caribbean Posting). “At this moment in time, there is only one posting, which is Petrotrin Posting, so there is no comparison.” He stressed that the price drop in the fuel oil / gasoil does not reflect the same drop in that of the gasoline. “The fuel prices are not determined by G.E.B.E. but by the posting and if the crude prices go down, this does not entail that the additional expenses in getting the products to St. Maarten will also go down. The additional expenses is determined by SOL not G.E.B.E. and also understand that the scale of economics also plays a role in this,” Maduro concluded.