Gas Prices on the Rise: What It Means for Santurce Residents

Gas prices in Santurce and Puerto Rico are on the verge of a significant increase. According to Luis Rafael Gueits, president of the Asociación de Detallistas de Gasolina, the combination of global conflicts, particularly around the Strait of Ormuz, attacks on oil pipelines, and the ongoing war between Ukraine and Russia, are driving up the cost of diesel, a fuel that is crucial for the island's economy and daily life.

For starters, the Strait of Ormuz remains closed, and while there are reports of ships passing through, the situation with the conflict between Iran and the U.S. is far from over. Iran has also attacked oil pipelines in Saudi Arabia, disrupting the flow of crude oil to the port of Yanbu in the Red Sea. This has affected shipments, reducing the amount of oil reaching Puerto Rico. Additionally, the conflict in Ukraine has damaged four key refineries, reducing their output to just 25%, impacting the global diesel supply.

Compounding these issues, Saudi Arabia is now shipping oil through Oman instead of the Red Sea, forcing European countries to look elsewhere for their fuel needs. This competition for resources means higher prices for everyone, including Puerto Rico. The U.S. has announced it is cleaning up mines in navigation routes, potentially freeing up 10 million barrels of oil and refined products daily. However, this could offer some relief, but the overall outlook remains uncertain.