GMAX Gas Station in Golden Rock, St. Croix on May 8th, 2025. Photo Credit: V.I. CONSORTIUM.
Amidst renewed scrutiny of fuel prices, the V.I. Department of Licensing and Consumer Affairs has reported “notably high gross margins between rack rates and retail prices”.
Regular gasoline on St. Croix has a rack rate of $2.46 per gallon but is sold at the pump for $3.99—a markup of 62%. According to DLCA, margins on diesel and gasoline reach 65% and 70%, respectively. The agency's press release, issued this morning, comes following a Consortium article that spotlighted the stark gap between rack prices and retail costs. That report was based on a statement from Senator Hubert Frederick, who urged DLCA to intervene. The article sparked strong public reaction, with many in the community criticizing the agency for failing to enforce pricing regulations.
Margins on fuel in St. Thomas and St. John are even higher, the Monday morning press release from the department noted, with a gallon of diesel costing as much as $5.89.
“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.”
Additionally, local rack rates have not dropped commensurately with declining crude oil prices on the global market. DLCA noted a 19% decrease in the price of Brent crude as of May 2025, but only a 2 to 5 percent decrease in rack prices for regular gasoline, premium gasoline, and diesel.
Nevertheless, “if savings are being realized at the rack, they must be passed on to the public,” Ms. Hodge insisted. The agency encourages consumers to report concerns in person, over the phone, or online.
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