High Oil Prices Not Discouraging Use

May 16, 2008

The skyrocketing price of crude is not putting a dent in local demand for oil and gas, according to a recent report by the National Oil Refinery (RECOPE).

Total consumption increased by 4.15 percent in the first quarter of 2008, rising from 6.6 million barrels in 2007 to 6.8 million barrels this year.

RECOPE estimates total petroleum imports for 2008 will also rise by 6.5 percent this year to a new record of 19.6 million barrels. In 2007, the refinery imported a then-record 18.4 million barrels.

The price tag for such an increase could be painful. Market analysts predict the price of oil will average between $150 and $200 by the end of this year.

Oil was trading at $124 on Monday. It sold at less than half that price this time last year, at $62 a barrel.

Several factors play into the climbing price of crude. Analysts point to the weak dollar, geopolitical problems in Nigeria and Iran, and increased consumption by rapidly developing economies in India and China.

Costa Ricans are already feeling the squeeze at the pump. As of last Saturday, the Public Services Regulatory Authority started an across-the-board gas price hike.

Regular went up 16 colones (a little over 3 U.S. cents) per liter, super went up ¢20 (4 cents) and diesel by ¢31.

That means the price of super will go from ¢601 ($1.21) a liter to ¢621 ($1.25); regular will go from ¢588 to ¢618; and diesel from ¢556 to ¢587.

These prices could rise again next month after a bid by RECOPE to push the price of regular gas up another ¢40 on top of the regulatory authority’s rate, the daily La Nación reported.

 

You may be interested

Victorious Champions coach celebrates Costa Rica-style: ‘This is pura vida’
Keylor Navas
122 views
Keylor Navas
122 views

Victorious Champions coach celebrates Costa Rica-style: ‘This is pura vida’

Katherine Stanley - May 27, 2018

Costa Rican superstar goalie Keylor Navas has made his mark on the field for Real Madrid, but also on the…

5 questions for Costa Rican artist Rossella Matamoros
Weekend Arts Spotlight
109 views
Weekend Arts Spotlight
109 views

5 questions for Costa Rican artist Rossella Matamoros

Elizabeth Lang - May 27, 2018

Using art in all its possible expressions has motivated Rossella Matamoros for more than two decades. At home in Costa Rica…

Costa Rica’s Keylor Navas, Real Madrid nab third consecutive Champions title
Keylor Navas
200 views
Keylor Navas
200 views

Costa Rica’s Keylor Navas, Real Madrid nab third consecutive Champions title

Katherine Stanley - May 26, 2018

Costa Rica's star goalie, Keylor Navas, continued his historic march through world football as his club team, Real Madrid, won…