The Caribbean diesel and gasoline markets have experienced notable trends and developments in 2023. As external economic shocks continue to impact the region, including high food and fuel prices, it is crucial to analyze the current state of these markets.
This article provides an overview of the Caribbean diesel and gasoline markets as of 2023, supported by verified sources.
Caribbean Islands Bunker Fuel Market
According to Allied Market Research, the Caribbean Islands bunker fuel market was valued at $8,931 million in 2017 and is projected to reach $16,404 million by 2023, exhibiting a CAGR of 10.7%. This growth is driven by increasing demand for bunker fuel in the maritime industry, which serves as a key driver of economic activity in the region.
Impact of External Economic Shocks in Caribbean diesel and gasoline markets
Caribbean countries should prepare for sustained effects of external economic shocks in 2023, including high food and fuel prices. The Inter-American Development Bank (IDB) warns that these shocks can have prolonged impacts on the region’s economy, urging governments and stakeholders to implement strategies to mitigate these challenges.
Energy Transition and Volatile Oil Prices
The Caribbean region’s small markets and import-dependent economies are particularly vulnerable to volatile oil and gas prices. The Atlantic Council highlights the importance of transitioning towards renewable energy sources to reduce reliance on fossil fuels and mitigate the impact of price fluctuations in the long term.
Fluctuating Diesel and Gasoline Prices
Latin America and the Caribbean witnessed record high diesel and gasoline prices in June 2023. This phenomenon affected various countries, including the Caribbean islands, Ecuador, Venezuela, and Cuba. The uncertainties surrounding possible Russian supplies also contributed to price fluctuations in the region.
Average Prices of Caribbean diesel and gasoline markets
According to Rhinocarhire.com, average petrol and diesel prices in the Caribbean between 2016 and 2022 ranged from €1.01/lt (in Puerto Rico) to €1.93/lt (in Barbados). These variations highlight the differences in pricing across the region and the impact on consumers and businesses.
You can read more here about the factors affecting gasoline and diesel prices.
Conclusion
The Caribbean diesel and gasoline markets in 2023 have witnessed both growth opportunities and challenges. The bunker fuel market is projected to expand according to Diesel Forecast, driven by maritime activities.
However, the region’s import-dependent economies face ongoing external economic shocks, including high food and fuel prices. It is imperative for governments and stakeholders to prioritize energy transition, reduce reliance on fossil fuels, and develop sustainable strategies to mitigate the impact of volatile oil prices.
By staying informed about these market trends and challenges, Caribbean nations can navigate the complexities of the diesel and gasoline markets for a more resilient and sustainable future.
Sources:
Caribbean Islands Bunker Fuel Market Overview. https://www.alliedmarketresearch.com/caribbean-islands-bunker-fuel-market. Allied Market Research. Accessed December 27, 2023.
IDB: Caribbean should brace for high food, fuel prices in 2023. https://caribbean.loopnews.com/content/idb-caribbean-should-brace-high-food-fuel-prices-2023. Loop News. Accessed December 27, 2023.
A roadmap for the Caribbean’s energy transition. https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/a-roadmap-for-the-caribbeans-energy-transition/. Atlantic Council. Accessed December 27, 2023.
Latin America 2023 refined products market cloudy on possible Russian supplies. https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/010923-latin-america-2023-refined-products-market-cloudy-on-possible-russian-supplies. S&P Global. Accessed December 27, 2023.
Caribbean Petrol and Diesel Averages 2016 – 2022. https://www.rhinocarhire.com/World-Fuel-Prices/Caribbean.aspx. Rhinocarhire. Accessed December 27, 2023.