The Virgin Islands Licensing and Consumer Affairs Department is ramping up enforcement efforts as fuel prices across the territory remain high, despite a 19 percent drop in global oil prices.
According to a press release issued Monday, Brent crude oil fell to $61.12 per barrel as of May 2025, yet consumers in the U.S. Virgin Islands have seen little relief at the pump. On St. Croix, rack rates at Sol Petroleum’s Limetree Bay Terminal decreased only slightly —regular gasoline dropped from $2.53 to $2.46 per gallon, premium from $2.73 to $2.67, and diesel from $2.88 to $2.73.
Despite these reductions, DLCA found substantial markups between rack and retail prices. Regular gasoline that costs $2.46 at the rack is being sold for $3.99, representing a 62 percent margin. Premium and diesel margins are even higher, with retail prices at $4.40 and $4.63, respectively, compared to rack prices of $2.67 and $2.73, the press release stated.
Retail fuel prices are even steeper in St. Thomas and St. John, where diesel has reached as high as $5.89 per gallon. In contrast, Gulf Coast wholesale gasoline is priced around $2.04 per gallon, and U.S. retailers typically apply gross markups of just 10 to 12 percent, or 27 to 40 cents per gallon. Nationally, the Producer Price Index for gasoline fell by 11.1 percent in March, and retail prices declined 13.3 percent year-over-year, the release stated.
The DLCA pointed to a pattern in which retailers increase prices in response to rising rack rates but are slow to reduce them when costs fall. To address what it called an imbalance in pricing practices, the agency is conducting audits and investigations using its subpoena authority. Fuel retailers are now required to submit documentation such as rack rate purchase invoices, shipping and logistics costs, inventory turnover data, operational overhead, and pricing models, it said.
“The people of the Virgin Islands deserve transparency and fairness at the pump,” said DLCA Commissioner Nathalie Hodge. “I urge all fuel retailers to reassess their current prices, account for recent declines in costs, and make the necessary adjustments. If savings are being realized at the rack, they must be passed on to the public.”
Consumers are encouraged to report any pricing concerns by calling 340-713-3522 or 340-714-3522, emailing myrna.george@dlca.vi.gov, or visiting www.dlca.vi.gov.
