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Category: Business
Feb-08-2010
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Puerto Ricans paying 64% more for gasoline than six years ago; Average price at the pump each time $16.46, up from $10.04 in 2003
This week’s CARIBBEAN BUSINESS/WOSO Radio/Gaither International poll revisits the fluctuating price of gasoline that has kept Puerto Rican consumers on an economic rollercoaster over the past six years.
Data from Gaither International’s Brand Tracker Surveys provides a quick snapshot of gasoline price fluctuations during that period including the rise in June 2008, when the price of gasoline reached a painful $1.00 per liter.
Last year, the average gasoline purchase increased 64% when compared with 2003, meaning consumers spent 64% more every time they purchased gasoline in 2009 when compared with survey results six years ago. The average pump bill in 2003 was $10.04 compared with $16.46 in December 2009.
“The impact of this dramatic increase in ticket value could be more far reaching and significant since it does not take in consideration the number of times (purchase frequency) that gasoline is purchased by consumers,” said Beatriz Castro, research analyst with Gaither International. “In other words, consumers may not only be spending 64% more on gasoline, but they are probably getting a smaller amount of fuel for the 64% higher ticket. Often, buying less gas translates into more return visits to the pump, thus having an economic impact on consumers greater than the 64% increase in ticket purchase.”
In 2003, some 27% of consumers reported spending $5 or less the last time they purchased fuel. In 2009 only 7% reported spending $5 or less. In 2003, 53% reported spending between $6 and $10 compared with 33% in 2009.
In 2003, 80% of consumers spent $10 or less the last time they purchased gasoline, compared with 40% in 2009, the Gaither analyst noted. In 2003, only 11% of consumers reported spending more than $15 on their last gasoline purchase compared with 44% last year.
“Price is not the only thing that has changed dramatically since 2003, said Castro. In 2003, premium gasoline represented approximately 40%-to-45% of the market. For some brands it was even higher than that. Texaco was the market leader with 28% of the last-visit market. Esso and Shell both had 17% of the market and Gasolinas Puerto Rico, featuring their Big John’s convenience stores, had 2% of the retail gasoline market. Independently owned gas stations already represented 25% of the market and were becoming a major player in the market, particularly outside the metropolitan area of San Juan,” Castro said.
By 2009, independently owned gas stations had cornered a historic-high 42% of the last-visit market. When price becomes the most important attribute in the decision-making process, value-positioned brands are immediately affected. Today, premium gasoline represents less than one-fifth of the market.
Texaco (Chevron) is the leader among brand names with 20% of last visits. That 20%, however, is significantly less than the 28% in 2003 and the 34% in 1999. Esso, which had 100-plus stations around the island, has pulled out of the market and most of its locations were acquired by France-based Total, which had previously acquired Gasolinas Puerto Rico and its Big John’s stores (now Bonjour).
Total has 13% of the last-visit market, matching Shell, which also has 13%. Gulf had 9% of the last-visit market share in 2009 compared with 11% in 2003.
For more information at <http://www.caribbeanbusinesspr.com>
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