gas prices in STX

Hovensa is the largest refinery in the Western hemisphere, and that's fact.

http://maps.google.com/maps?q=http://bbs.keyhole.com/ubb/download.php?Number=142111&t=k&om=1

NugBlazer

Actually the information you provided proves that Hovensa isn't the largest refinery in the Western Hemisphere.

According to the information from you link

Exxon/Mobil Baytown - Texas 557,000 BPD

Hovensa USVI 494,000 BPD

On Hovensa's webb site they only claim to be one of the worlds largest refineries with a processing capacity of 495,000 BPD. They produce 175,000 BPD of gasoline along with heating oil.

Jim

"As to shipping gasoline directly Hovensa loads the gasoline on very large tankers. Do you think the cruise ships would want a a large tanker docking in Charlotte Amalie to off load?"

Uh, small point but freight isn't off-loaded at the cruise ship docks.

The very large tankers that sail from Hovensa probably draw to much water for the freight port. The only docks with deep enogh channels could be the main harbor where the cruise ships come in. Very large tankers have a draft of 16 - 20 meters.

The fuel could be off loaded off shore and piped to land assuming you could find a secure enough morring..

Jim

O'well, we tried! 🙂
We still feel we are paying TOO MUCH!
I still would love to know what the gas price is in PR! Also, once the gas goes to PR, where does it go from there? (besides here).
Why?

Gas station owners on STX make a very good living. In early October the rack rate for gas from Hovensa was $2.155 per gallon. I believe the delivery charge is $0.05 per gallon and the VI Gov adds either $.07 or $0.09 in taxes. At the pump stations on STX in October were charging $2.60 - $2.85 per gallon for regular. That means station owner's gross profit per gallon was in the range of $0.35 - $0.60 per gallon.

That is why a station owner such as Smokey on the east end of STX can put his station on the market for $250,000 or almost $1 million if you want the land and buildings.

If you can't beat them here is your chance to join them.

Jim

sherri,
The Wall street Journal ran an article a few years back, about the oil companies not investing in oil refineries, over the past 20 years or so. So supply and demand has a significant impact on the price of Gas. One would think that the elected officials would cut a better deal for all the USVI's, regardless of shipping cost's/labor etc.
For Hovensa a reduction in price for the islands would be just another expense/cost of doing business in the islands. When we had a gas crises back in the early 70's the gas stations had a different price for cash and credit cards. Maybe a resident price and tourist price could be instituted.

many people on STX have commented that the refinery should provide a cut rate to STX for gasoline as a dividend to the residents for having the refinery here. I doubt the discount would extend to the other USVI islands even if they could be persuaded to make such a concession to STX. The refinery has both good and bad influences on STX, but in the grand scheme of things I think that the island is much better off with the refinery in operation... even if the gas stations on the island make double or triple profit per gallon versus their counterparts on the mainland.

Some of the lowest prices for gas on STX tend to be at a few specific stations on a regular basis. The one at the corner where Midland Road meets the road running between La Reine and Country Day is often the lowest at any given time. Others to watch for are Gateway at Peter's Rest and three stations near Plaza West - Consumers, the new station with the Church's Fried Chicken attached, and another one a couple blocks east of there next to the cement plant. Those three seem to have a price war going on now and then and the one by the cement plant even pumps your gas for you.

I think Hovensa does discount for STX already (price Reflects it). The other USVI could enjoy a reduction by having the tourist pay the difference. Example Resident gas price $2.79 a Gallon, Tourist $4.49 a gallon. I believe the other island nations or states charge alot more for gas than the USVI. Why should we make fish of one and flesh of the other if we have the ability to change it?

the difference in prices between STX and STT is due to the additional shipping that the fuel goes through along the way and mark-ups from the middlemen. STX doesn't get any discounts from the refinery. That is why the fuel prices on STX are higher than many mainland markets that are a long way from a refinery despite our very minimal shipping cost per gallon from refinery to station. My husband's company buys millions of gallons of jet fuel from the refinery every year and discounts just don't happen.

60% of oil is shipped via tanker by sea to the US Mainland, it is refined at various locations, the US National average price of regular unleaded gas at the pump is $3.09 per gallon today Nov 28, 2007, as reported NY Times. You can't compare AV-Gas, JP4,JP5 or JP8 that is 100% Leaded, against Home Heating oil or gas for the auto. Somebody better tell the people at the commodity and futures markets that you can't discount crude to be refined at a later date. If gas at the pump on STT is going for $3.89 a gallon something is wrong, very wrong.

Lizard - that is why Walmart wipes out all the mom and pop stores when they open a new store. STT and STJ are extremely small markets as far as bringing in gasoline. They can't do it cost effectively versus the mainland bringing in multiple super tankers and getting price discounts for doing so. $3.89 may already be somewhat subsidized. Volume is where the price can come down. When 50K people driving maybe 15K cars have to cover the entire cost of a transport vessel, it does mark up their price at the pumps. The only reason STX isn't sky high as well is that we aren't stuck paying tanker transport fees on top of what we do pay.

Today I paid 74 cents a liter for 87 octane. A lot cheaper than Seattle!

Hi Jeff! Are you and Katrina all settled into Puerto Rico and loving it?

Jeff Kruse,
If you bought that gas in Puerto Rico That equates to $2.81 a gallon. I believe Hovensa delivers there!

Yes we are loving it!

When we left Seattle gas was about $3.10 and that was 5 weeks ago. I think when we moved here gas was only 64 cents a liter. Big change in just 5 weeks.

It takes a lot of work to start your life over somewhere. After 5 weeks we are finally getting settled. I just installed a hot water system yesterday. It seems like many of the houses in Puerto Rico don't have hot water. I have put some pictures on our blog. http://thekrusechronicles.blogspot.com/

So if they can sell gas in Puerto Rico for $2.80 a gallon, I guess Hovensa uses sails on the tankers to get there. Kinda makes you wonder!

Again,
That just seems to make the price for gas in STT highway robbery! Something is WRONG with this picture!

Sherri, it sort of points to our original story about that middleman who's getting richer & richer, doesn't it?

Trade,
I was wondering where you were! Ya, what ya gonna do? Pay, pay, pay! Paradise TAX! 🙂

Exactly. It won't change in my lifetime, I'm sure. I suspect there's a reason somebody hasn't started a business with smaller tankers bringing gas here.