Senate Vice President Carmelo Ríos Santiago, who represents the Bayamón District, will request a meeting with Erwin Álvarez, interim secretary of Puerto Rico’s Department of Consumer Affairs (DACO), to evaluate alternatives that would mitigate any increase in the price of filling liquefied petroleum gas tanks, both residential and commercial. Ríos said in written statements that Empire Gas announced it is considering raising the price of the 100-pound gas cylinder, commonly used in Puerto Rican homes for cooking, by up to $10.00.
The cylinder currently costs around $106.00. The increase would take effect November 1, and the company justified it by citing rises in the hydrocarbon market. Ríos called it a very significant increase at a time when hydrocarbon-based fuel prices have risen exponentially, and said the meeting would take place as soon as possible to evaluate real and direct alternatives.
DACO regulates profit margins on hydrocarbons such as liquefied gas and gasoline, and its Economic Studies Division monitors components affecting fuel prices, including natural gas, crude, refining costs, transportation and excise taxes, to prevent speculation or unjustified increases by wholesalers and retailers. Puerto Rico consumes about 85 million gallons of liquefied gas a year, sold in 100, 50, 40 and 20-pound cylinders (the last sometimes filled with only 17 pounds).
The benchmark is Mont Belvieu; because Puerto Rico produces none, prices follow the world market, with the U.S. East Coast as the direct reference market.