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June 12, 2008
DLCA COMMISSIONER ISSUES ORDER REGARDING PRICE INCREASES FOR GASOLINE PRODUCTS As part of the Administration’s continuing efforts to bring some stability to the ever-increasing cost of gasoline products in the territory, Licensing and Consumer Affairs Commissioner Kenrick Robertson Thursday issued an order to gasoline wholesalers and retailers in the territory establishing a procedure for fuel price increases. "Effective today, wholesalers of gasoline, gas station operators and marine service stations in the territory will only be permitted to increase their fuel prices after submitting a written request to the DLCA which shows the date of delivery, the amount of the proposed increase, along with submission of an invoice evidencing the increased prices," Robertson said. He noted that for "too long and at the detriment of Virgin Islands consumers, fuel wholesalers and retailers have been in the practice of increasing prices based on the per barrel cost of oil, regardless of whether their fuel inventory was purchased before the increased cost took effect." Robertson’s order spells out requirements for written authorization to be secured from the DLCA prior to any increase; it institutes a daily $200 fine for any violation and where there exists a continuing pattern of violation, "DLCA will use all legal remedies available, including the initiation of proceedings for the revocation of the entity’s business license." DLCA will also assess a $200 fine on any wholesaler or retailer which increases the cost of gasoline products without first obtaining written authorization from the department. "In the midst of these challenging times where the cost of gasoline is edging closer the $5 per gallon mark, and against the increase in the rack rate at HOVENSA today, the DLCA is committed to taking the necessary steps to ensure that both wholesalers and retailers remain competitive but at the same time, protect consumers against price gouging activity," Robertson said. The order, signed today, remains in effect through the end of September and will be applied to the 29 gasoline retailers and two marinas on St. Croix; the three wholesalers, 21 retailers and six marinas on St. Thomas and to the two retailers and one marina on St. John. |
