War in Ukraine causes further soaring fuel prices

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“Ministry of TEATT informs community to be aware of international developments”

PHILIPSBURG, Sint Maarten — The Ministry of Tourism, Economic Affairs, Transportation and Telecommunication will soon be adjusting fuel prices upwards after further developments regarding Russia’s recent invasion of the Ukraine. According to the Ministry, who is responsible for the adjustment of fuel prices on St. Maarten, global oil prices are at an all-time high and are expected to continue to fluctuate. 

The Ministry monitors prices daily primarily via an independent source, the Platts Oilgram Price Report. Further research shows that fuel prices have not been this high since 2008. 

The increase in fuel prices on Sint Maarten is directly related to amongst others, the sanctions recently placed on Russia, but there are also other contributing factors such as the slow recovery from the pandemic, oil production companies shifting from cheaper winter gas to more expensive summer varieties, as well as widespread supply and demand issues. Presently, the National Fuel Price Average in the U.S. is just about US$ 4.17/gallon, with some States hitting surpassing $5/ gallon.

As the Russia and Ukraine crisis continues, it is expected to see further fluctuation in the gasoline prices, which also impacts the cost of import of food and other goods to the island. The Ministry further stated that as a country so heavily dependent on imports, the effects of global developments on prices locally cannot be effectively controlled. 

The ministry will continue to observe the current fluctuation in global oil prices and will be making the necessary adjustments. The Ministry is also advising the community to be aware of the current developments and the effects it will have on fuel pricing locally.