Inquiries about current gasoline prices in Aruba are our top search request. For this reason ArubaLife keeps track of the current gasoline price in Aruba for you. We publish the price per liter in Aruba florin and the price per US gallon in US dollar. For your convenience we do all conversions. Visit this site frequently, we'll keep you posted.
There are only two gasoline distribution companies on Aruba: Valero and Texaco. All gasoline stations in Aruba sell exclusively unleaded gasoline and gas-oil (diesel) and are supplied by Valero Aruba Refinery, including Texaco gas stations.
Tank stations are only allowed to change prices once a month. All gasoline stations, regardless the company, have the same gasoline price. Gasoline prices are NOT posted on boards like in the US and Europe. In Aruba all gasoline prices are in Aruba florins per liters.
Officials at the Department of Economic Affairs (DoEA) meet twice a month with all the stakeholders, except consumers, to talk about the prices. DoEA: "As a base for the calculations, the quoted prices of the US Gulf Coast are employed as published in the Platt’s Oil gram." DoEA stipulates the current retail fuel prices for the consumers by publishing it every second Wednesday of the month in local newspapers.
The gasoline prices in Aruba are settled as follows: officially the maximum retail prices for oil products (gasoline, kerosene and diesel) are determined by the DoEA. They calculate the retail prices each month to the adjusted international quoted prices by using a specific structure to determine the prices.
This "specific structure" is closely guarded from consumers, as we do not know the exact details on how the prices come to be. Details like profit margins are closely guarded as being "sensitive" information. Taxes are a very big part of the price structure as well.
This is what we know: Valero Aruba Refinery imports gasoline and kerosene (diesel is locally made) and calculates the price first hand. This calculation includes the cost of import (for diesel, cost of production), distribution and profit margins. Following this, the gasoline stations add their profit margins, where at the end the government adds its taxes and followed lastly by the publication.
Aruba depends heavily on fossil fuel for daily life, tourism and other economic activity. Not only vehicles need fuel but Aruba's most important utility company uses fuel: the water purification and power plant.
To generate power the utility company uses diesel for the generators and for processing of the water. This process, reverse osmosis, is generally implemented in desert areas with lots of cheap oil at their disposal. Not in Aruba. After reading above piece about the gasoline price you know that oil doesn't come cheaply in Aruba.
Perhaps bio-fuel for cars? A large company from Brazil has shown interest to build a distribution facility for ethanol-fuel for export and maybe local consumption. How about wind and solar power for the houses? Aruba has average winds of 20 miles per hour and sun in abundance.
In the near future there seems to be hope for these technologies to further develop into a secure and sustainable source of energy. For an island that lacks any natural resources, for now, perhaps it's the only road ahead.
Where is the CNN article which mentioned the elevated prices?
During the course of March 2nd CNN corrected the error. Aruba was mentioned as having the second most expensive gasoline price in the world with $12.03 a gallon.
Aruba is close to Venezuela, why don't you get your fuel from them where it is so cheap?
Indeed the water that separates Aruba with Venezuela is only 17 miles (27 kilometers) wide. Since the 90s Aruba does not receive Venezuelan fuel due to "contractual" reasons. There is no political motive behind this, as some people suggest. Aruba has no political issues with Venezuelan President Chávez. In fact, foreign relations are a matter of the Foreign Ministry in The Hague, The Netherlands.
Didn't Venezuela start an oil company with the intent of selling cheap gasoline to the Caribbean?
A few years ago the Venezuelan government launched PetroCaribe (Caribbean Petroleum) as an alternative seller of fuel for Caribbean nations. Some islands became members, but the majority didn't. Apparently there are strings attached when purchasing from PetroCaribe.
How are the gasoline prices established?
Scroll higher up this article for the heading "Gas Price" and you'll find an explanation.
You have a refinery in Aruba, why don't they sell you cheap oil?
There is a refinery on the island, but it is not owned by Aruba. Actually, it is owned by Valero Energy Corporation, based in San Antonio, Texas, US. There are several reasons why Valero doesn't supply the island with cheap oil. Fact of the matter is Valero is a publicly traded company with the intention of maximizing shareholders value. They are not in the business of subsidizing any community, despite the fact that they enjoy a legitimate tax holiday.
I see different prices posted on the internet, can you explain exactly how you convert the prices?
The biggest confusion doing the conversion is apparently the exchange rate US dollar to Aruba florin. Some people use the wrong exchange rate or forget it altogether.
Bear in mind that Aruba florin is the only legal money in Aruba. US dollar is accepted as a form of payment to make it easier on the visitors. The change must be given back in Aruba florin. In reality change is given back in US dollar to make it easier on the visitor.
The monetary authority in Aruba is the Central Bank of Aruba and they have the exchange rate fixed at 1 US dollar is 1.75 florin. There are variations for banks and other businesses that can sell the dollar up to 1.80 florins. Anything outside the 1.75 - 1.80 band is not allowed, therefore illegal.
In daily life, when you see a price in Aruba florin, such as gasoline, the exchange rate will be 1 US dollar is 1.75 florins. For this reason, this is the exchange rate used for making the gasoline conversion.
Example for May 2008:
>> Official gasoline price published by the government every second Wednesday of the month. For April: 2.404 Aruba florins per 1 liter.
>> 1 US gallon is 3.78541178 liter.
>> The price for 1 US gallon in Aruba florin: 2.271 times 3.78541178 is 9.10012991912.
>> The prices for 1 US gallon in US dollar: 9.10012991912 divided by 1.75 (exchange rate) is 5.2000742394971428571428571428571.
>> Two digit rounding: $5.20
>> 1 US gallon costs US$5.20
SPECIAL NOTE: Recently an article appeared on CNNMoney.com stating that Aruba's gasoline prices are at $12.03 a gallon.
ArubaLife emphatically confirms that the price mentioned in the article is NOT correct. Below prices are current.
The CNN article has been altered, and the piece about Aruba has been removed.
New! FAQ section added after all the confusion. Scroll to bottom.
NOTE: Diesel price in Aruba is currently at fl. 2.31 per liter | $5.00 per gallon.
The gasoline price in Aruba rose almost 10% in the last 4 months. Please, study the historical figures below.
NOTE: We will publish more data as it becomes available.
