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Friday, December 2, 2022
HomeNewsArchivesHovensa Rack Rates Keep Falling

Hovensa Rack Rates Keep Falling

Effective April 30-May 6, Hovensa dramatically dropped the price retailers pay for gas by 19 cents to $3.07 per gallon for regular and two cents to $3.55 for premium, marking seven straight weeks of price cutting from the all time high price record of $3.68 and $3.97 per gallon, set the week of April 9-15.

Meanwhile self-service prices at the pump on St. Croix as of May 24 for regular grade gasoline ranged from $3.58 to $3.99 per gallon, and $4.10 to $4.60 for premium. On St. Thomas, regular ranged from $4.66 to $4.99 and premium $4.86 to $5.13. St. John prices were $4.44 for regular and $5.01 for premium.

Hovensa prices follow national trends. Over the same period, national prices also peaked then dropped off, according to the U.S. Energy Information Administration. Since peaking April 9 at $3.99, the average U.S. regular gasoline price at the pump has declined by roughly 28 cents per gallon

Once the refinery stops providing fuel at end of June, the territory will have to procure gasoline from other sources, likely at higher prices than those from Hovensa. Wholesale prices and retailer profit margins may become more difficult to ascertain in the absence of Hovensa’s weekly update on its prices.

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Prices should not increase immediately at the pump as gas stations must first sell the gas they’ve already purchased at lower prices.

Hovensa’s wholesale rate does not include local gasoline taxes of 7 cents per gallon or retailer markup.
St. Croix retailers typically charge 40 to 50 cents above the wholesale rate, while retailers on St. Thomas typically charge roughly 50 cents more than St. Croix retailers. After June, fuel on St. Croix will be procured in a similar fashion, from the same set of suppliers and shippers, as St. Thomas.

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