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Monday, November 28, 2022
HomeNewsArchivesHovensa Rack Rate Continues Downward Slide

Hovensa Rack Rate Continues Downward Slide

Effective this week through June 17, Hovensa is charging retailers $2.98 per gallon of regular grade gasoline and $3.46 per gallon of premium grade, dropping the price by 12 cents over last week and continuing a several-month downward trend. Retailers also pay seven cents per gallon fuel tax to the government.

Prices have gone down nearly each of the nine or so weeks since they reached the all-time high price of $3.68 and $3.97 per gallon, set the week of April 9-15.

In a statement Monday, the V.I. Division of Licensing and Consumer Affairs urged gas stations to reduce pump prices as soon as possible.

“In light of the persistent economic challenges that Virgin Islands residents are facing, there is undoubtedly a need for price decreases to be reflected at the gas pumps,” DLCA Commissioner Wayne Biggs said in a statement. “Retail stations which purchase a new fuel supply from HOVENSA are expected to pass on the recent wholesale savings immediately,” Biggs said.

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While retailers regularly request approval of price increases, “the same cannot be said regarding price decreases,” Biggs said.

Licensing surveys gas prices regularly and as of June 8 – before this current reduction took place – the lowest priced gas on St. Thomas was $4.56 per gallon for regular grade and $4.76 for premium, at Race Track and One Stop. The lowest prices on St. Croix were $3.50 for regular, at Everybody’s Service Station, and $4.00 for premium at Exxcel.

Prices are not expected to decrease immediately at the pump as gas stations must first sell the gas they’ve already purchased.

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