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Shell explains gas price hike
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Posted on May 20 2004
Following its implementation of a 7-cent increase in its gasoline prices, Shell issued a statement, citing the record-high increases in the price of crude oil as the reason behind its price hike.
“Unfortunately we are required to raise prices once again. Upward pressure on the worldwide price of oil has forced the cost of refined product to increase. There has been a record increase in the cost of crude oil. In addition, [China’s] explosive economic growth rate has put extraordinary pressure on refiners to meet the region’s need for refined oil products. The net result has been a tremendous increase in the cost of refined gasoline and oil product available to Shell. Shell has no choice but to regain some of the loss associated with rising costs through a price increase,” said Phil Stalker from Shell’s corporate office in Puerto Rico.
Shell increased the price of regular and premium gas at the pump by $.07 a gallon. The price of diesel fuel was also increased by $.05 cents a gallon.
Should the price of refined product declined, Shell said it will reconsider its position and lower the price of fuel accordingly.
“We look forward to better times ahead and the reduction of the price of oil so that prices at the pump can be reduced for our customers,” Stalker said.
