gasoline station

Gas Price Trends in Jamaica 2020-2022

Greetings!

You want to buy a hot car, don’t you? Maybe a Mark X or a flashy BMW with a 3-litre engine? I mean, the faster and flashier your car the more girls you get, right? Well, it may be time to settle down and find a wife because gas prices are out of control. Flashy cars just aren’t affordable anymore. I remember when I bought my Toyota hybrid, I saw a beautiful red Toyota Supra at the lot just calling out to me. It was also well within my budget. For a moment I drooled at the thought of the many candies I could drive around in my front seat daily. I smiled at the thought, but maturity wouldn’t let me do it. Who knows, maybe someday during the mid-life crisis I will, so candies, get yourselves ready!

Inflation is real! Based on our monetary system, the prices of goods and services must increase for the economy to be sustainable. However, due to the COVID-19 pandemic which altered demand and disrupted supply chains, coupled with the war in Ukraine, the price of gas has escalated. I have been meticulously tracking the prices of gas for years using the ‘Simply Auto’ app. I recognized how significant the prices have increased when in May 2022, the cost to fill my tank exceeded 10,000 Jamaican dollars! While inflation is inevitable, it is usually controlled and it is expected to fall between 2% and 4% without harming the economy. Jamaica’s inflation rate in 2020 was 5.23% but point-to-point inflation in April 2022 was 11.8% and the Bank of Jamaica predicted that inflation would peak between 12% and 15% in June of 2022.

The Trends

So here we go, the prices to fill my tank each year are as follows:

As you can see in the gallery above, in January of 2020 fuel cost $133.49 per litre. Please note that at that time this price was considered very high. In June of 2022 fuel cost $227.90 per litre which represents a 71% increase. If you were to calculate the rate for each fill-up you would see that each time I buy gas there is an increase in price. This is the best reflection of inflation that I can demonstrate. Note also that these figures are based on the cheapest gas station in Kingston. I will include a post on the best places to buy gas in Jamaica soon. A majority of this escalated price occurred in 2022 and if this trend continues we can expect close to $300 per litre by the end of the year. I hope I am wrong. If I am I will definitely ‘write’ it.

Recommendations

  1. If you live in a household with multiple persons; consider carpooling.
  2. Buy a hybrid/electric or a fuel-efficient (small) vehicle.
  3. Motorbike/Scooter.
  4. Walk if you are within 2/3km of the workplace.
  5. Work from home if the option is available.
  6. Use public transportation.

All the best on your journey through these challenging times. Adjust your lifestyle to spend less as our income is definitely not being increased at the same rate as inflation. We will get through this as we always do. That is just another day in the life of a Jamaican.

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