Licensing and Consumer Affairs Demands Answers On HOVENSA’s High Gas Prices

HOVENSA has been asked to produce all of its records regarding its pricing mechanism for the sale of fuel in the Virgin Islands no later than November 3.

The written request was sent to the company on Oct. 22 from Commissioner Wayne Biggs of the V. I. Department of Licensing and Consumer Affairs, who expressed concern that HOVENSA’s fuel prices have remained unchanged since about mid August, even though there has been a worldwide trend of decreased gas prices.

In his letter to Richard Layton, HOVENSA’s manager of accounting and warehouse, Commissioner Biggs pointed out that his department monitors gasoline and crude oil prices through a variety of internet websites.

“These sites show a steady decrease in fuel prices world-wide and we have become increasingly concerned that the consumers of the Territory are not realizing these decreases that have materialized in other jurisdictions in the United States,” he said.

However, the Commissioner acknowledged his department’s limitations in understanding the full scope of factors that influence fuel prices, noting that the pricing mechanism used in the United States is adjusted daily, while HOVENSA adjusts its prices on a weekly basis.

“This means that any change of prices by HOVENSA will most likely take effect at least one week later than in the States,” Biggs said. “All the reports indicate, however, that the decrease in fuel prices worldwide have been occurring for the last seven to ten weeks while HOVENSA’s pricing has remained constant.” HOVENSA submits weekly reports to the department.

Commissioner Biggs said while his department exists to protect Virgin Islands’ consumers from price fixing and other deceptive trade practices, HOVENSA is not under investigation.

“We take this opportunity to point out that the Department is not embarking on an investigation of HOVENSA and its business activities, but merely is trying to ensure that the consumers of the Virgin Islands are not short changed in any way with respect to the price they are paying for fuel.”