HOVENSA buys additional supplies of fuel for local distribution
Published: October 14, 2013
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ST. CROIX - Wholesale diesel fuel prices in the territory rose slightly, while the wholesale rate for regular and premium gasoline did not change, after HOVENSA today adjusted its rack rates.
Additionally, Government House announced on Saturday that HOVENSA has purchased and will take delivery next week of additional supplies of fuels for local distribution.
The company noted that given the apparent progress being made by all the parties to provide the assurances and clarifications required for the 30th Legislature to reconsider the Fourth Amendment to the Concession Agreement between the company and the V.I. government, it seemed an appropriate act of good faith for the company to increase its available fuel supplies at this time, according to a Government House statement.
Gov. John deJongh Jr. said he was informed that with these most recent purchases of fuel there is now sufficient fuel supply on the island to fulfill local demand through the balance of the calendar year.
The change to the rack rate - the price of fuel purchased wholesale at the HOVENSA truck-loading station on St. Croix - increased the cost of diesel fuel by 3 cents per gallon.
Under today's adjustment, independent gas station operators in the territory now are paying $2.93 per gallon for regular gasoline, $3.18 per gallon for premium gasoline, and $3.47 per gallon for diesel fuel when they buy their fuel wholesale at HOVENSA. Those prices include the 14-cents-per-gallon tax that the refinery collects for the government.
The rack rates influence retail gasoline prices in the territory because independent gas station operators can buy their gasoline at the loading station, then resell it to their customers. The new rates are effective through Sunday.
On the retail side, average retail prices for gasoline in the United States have continued to go down over the past week.
Nationwide, the average retail price for regular gasoline on Thursday was $3.345 per gallon, down about 2 cents from a week earlier, according to the American Automobile Association's Daily Fuel Gauge Report. The average retail price for premium gas in the United States on Thursday was $3.701 per gallon, down 2 cents from a week earlier, according to AAA. The average retail price of diesel fuel nationwide on Thursday was $3.877 per gallon, down less than 2 cents from a week earlier.