Winter storms in USA cause significant gas price increase

by February 24th, 2021

Motorists will see a significant increase in gas prices at the pumps come tomorrow.

 

According to the latest billing list issued by Petrojam, a litre of E ten 87 and 90 gasoline will cost $4.50 more.

 

Meantime, $3.60 will be added to the cost of a litre of other products.

 

These are automotive diesel oil, ultra-low sulphur diesel, kerosene and propane LPG.

 

The butane LPG will cost $2.97 more per litre.

 

Petrojam has explained that the gas prices have been adversely affected by severe winter storms in Texas in the United States of America.

 

The storms have forced the full or partial closure of several refineries and the inability of ships to operate.

 

This has resulted in a significant reduction of finished products to the market.

 

The supply disruption has triggered an extraordinary increase of 12 percent in the US gulf coast reference price per barrel, which is the main input in determining Petrojam’s ex-refinery price.

 

This situation, coupled with the devaluation of the Jamaican dollar, has led to increases in the refinery billing prices.