St Helena : Increase in Fuel Prices for St. Helena
Submitted by Saint Helena Herald (Juanita Brock) 28.02.2007 (Article Archived on 14.03.2007)
Executive Council recently agreed to increase the price of fuel sold from the Bulk Fuel Installation (BFI) and the impact of this, on prices at the pumps, has now been announced by Solomon and Company.
Press Release
Increase in Fuel Prices
Executive Council recently agreed to increase the price of fuel sold from the Bulk Fuel Installation (BFI) and the impact of this, on prices at the pumps, has now been announced by Solomon and Company. The increase in petrol is higher than that of diesel because the volume of diesel imported is greater, and this reduces the relative unit costs.
The increase in fuel prices does not relate to the price of fuel but to the increased shipping costs to bring the fuel to the Island. This price has only increased once in the last 10 years and has been a major benefit to the island. Unfortunately JoTankers recently carried out a review of this price and informed Solomon and Company that the costs must increase immediately, and may increase again for the subsequent delivery, as it is not economical for them to divert ships to St Helena to supply the Island with such a small quantity of fuel at the current price
Solomon’s is looking at alternative shipping companies who might be able to deliver fuel at a cheaper rate but early indications are that this will not be possible. In this respect, St Helena is in a difficult situation with limited options because, firstly the Island does not import any significant quantities of fuel, and secondly companies have to be willing to divert to the Island which means they should ideally be sailing in the South Atlantic.
When considering the matter, Executive Council was aware that delays in increasing prices last year, while the Council explored every other alternative to increasing prices meant, the BFI made a loss of nearly £200,000. The BFI cannot afford any further losses and so a decision has been taken to increase prices immediately.
Although Executive Council realises that the situation is far from ideal, they decided that it would be best to increase prices immediately and have recognised that a further increase may be needed if it is not possible to make alternative shipping arrangements at a more advantageous price.
Public Relations/Information Office
Office of the Chief Secretary
DATE February 2007
|
