We don’t know yet what is causing the price of some fuels to increase so rapidly, far greater than the global oil price, or faster than the bulk-rate price of gasoline on the NY Mercantile Exchange, where the fuels are sold (commodity) and it seems like there is a new price every week or even less than a week; which is much more frequent than the bulk-delivery that happens every 2-3 weeks at the PUMA Fuel Depot on Caesar Ridge Road.
Based on the chart about the bulk-rate price of Gasoline on the NY Mercantile Exchange (NYMEX), The orders done in January/February 2022 would be scheduled for delivery in March/April 2022.
And a technical analyst of fuel-commodity-trading business in Gasoline and Diesel, would say it is theoretically impossible for consumers in Belize to be charged a price that is based on the ‘spot-price’ of today’s costs. If that were the case then we will be paying much more for gasoline, diesel and LPG in May June, because the fuel purchased on the NYMEX today is 30% higher than it was in January 2022. And that is why it is called a ‘FUTURES MARKET’.
The fuel sold at Gas-Stations in Belize today, was purchased in January 2022, for February and March 2022 delivery.
During those weeks before the Ukraine-Russia crisis began, the acquisition cost fluctuated between $2.40 -to- $2.55 ($usd) per gallon , therefore the cost of gas today should reflect those acquisition costs.
Note price in January / February Futures
The interactive chart (courtesy: Yahoo Finance Charts ) shows the ‘Spot Price’ of Gasoline Futures on the NYMEX
The chart below is a interactive ‘Spot Market Price’ for ULSD (Diesel) Ultra Low Sulfur Diesel. We do not know if Belize imports the ULSD or cheaper versions.
UDP Says They Will Demonstrate Against High Fuel Prices
On Tuesday March 15th. 2022, the House of Representatives will meet in Belmopan for Parliament.
( parliament is the formal name for the representatives to present and debate BILLS, MOTIONS and other government business ).
On Friday March 11th. The opposition UDP announced that they have sought permission to have a demonstration on the steps of the ‘House of Rep’ , and the effort indicates that one of the purposes of the demonstration is to protest high fuel prices.
At 4pm EST, on Saturday March 12th. 2022 the ‘Spot-Price for Bulk Gasoline’ on the NY Mercantile Exchange was trading at $3.30 $USD / per gallon.
Linked News Article: Gasoline Prices May Go To Outrageous Levels