transportation

Many factors impact prices

While primarily impacted by the price of oil, other factors determine the cost of gas.

A new web site has been created to help consumers locate the gas stations with the lowest prices.

Carlos Lemos/La Prensa

pumpeD up: A new web site will allow consumers to check prices at 240 gas stations across the country to determine which ones offer the best prices.1084652

Falling oil prices in the United States does not necessarily mean relief at the pump for Panamanian drivers.

According to industry experts, a wide range of issues impact the prices of gasoline and diesel in the country, and the price of crude oil is just one part of the equation.

One of those other factors is the time of year. In the summer, demand for gasoline in the U.S. increases, while the demand for diesel is higher in the winter. That increase in demand pushes the prices higher.

“It may be that the price of crude oil in the U.S. is falling, but if the prices of gasoline and diesel are not, then they won't fall in Panama either,” said Oscar García, of the Autoridad de Protección al Consumidor y Defensa de la Competencia.

During hurricane season, storms can have an impact on the U.S. refineries located in the Gulf of Mexico. A drop in production from these facilities can adversely impact prices.

Consumers saw that scenario become a reality last week, when Hurricane Gustav closed those refineries, resulting in a price increase for U.S. consumers, the first hike in more than a month.

Locally, a 2003 Decree 36 stipulates that the price of oil derivatives charged by distributors will be determined every 14 days based on an average of prices from oil producers.

Compliance with that regulation, however, is sometimes questionable.

“Very few gasoline stations that keep this practice,” said Hugo Cuéllar, presidente de la Asociación de Distribuidores de Gasolina y Derivados de Petróleo.

Cuéllar said that one protection for consumers is that “everyone has to put their price on the board,” and that consumers are likely to drive by a station that is charging more than the competitors.

Consumers will also have a new weapon to compare prices offered by gas stations. A new web site, www.masgasolina.net, has been set up to compare the prices being charged by different stations across the country.

John F. Pardini, one of the creators of this site, said that consumers can locate the places offering the cheapest fuel without leaving their home or office.

Pardini said the site should reduce the variations between stations because they will be forced to match the prices of the competition.

For now, www.masgasolina.net includes 240 stations in its survey, covering an area that extends from Arraiján to Colón. There are plans, however, to extend coverage to the interior to place such as David and Santiago.

“One of the biggest advantages of the site is the inclusion of virtual map, which gives drivers the exact location of where they can find the cheapest gas,” Pardini said.