WILLEMSTAD – The Regulatory Authority of Curaçao (RAC) has launched a comprehensive review of the margins applied to fuel prices on the island, specifically the dealer margin and the so-called Curoil margin. These two components play a crucial role in determining the final retail price of gasoline and diesel paid by consumers at the pump.
According to RAC director Curt Belfor, the evaluation is part of a broader initiative to reassess the current pricing model for fuel distribution on the island. The dealer margin refers to the amount allocated to cover the operating costs of Curaçao’s gas stations, while the Curoil margin compensates for wholesale distribution costs borne by the state-owned supplier, Curoil.
“In 2024, RAC conducted a study into the regulatory principles and methodologies used to determine the dealer margin,” Belfor confirmed. “All 26 gas station operators on the island were involved in the process. The results have now been shared with them, and we are currently awaiting their feedback, which will be taken into account when formulating the final recommendation to the responsible minister.”
Currently, the dealer margin is set at 19.68 cents per liter for both gasoline and diesel. Based on current fuel prices, this represents approximately 10 percent of the pump price for gasoline and 12.5 percent for diesel.
Belfor emphasized that the review was necessary due to the rigid, uniform maximum applied across all stations—despite the significant differences in the economic realities of each location. “There are 26 stations on the island, and their operational conditions vary widely,” he explained. “Some may struggle to remain profitable under the current margin, while others may fare much better.”
Another factor prompting the reassessment is the global transition toward sustainable energy, which is already affecting the business model for traditional fuel retailers. The rise of electric vehicles and changing consumer habits are putting new pressures on gas station operations, making it essential to reevaluate the assumptions behind the current regulatory framework.
As for whether the evaluation will lead to changes in the dealer margin, Belfor said it is too early to say. “We’re reviewing all the input and data. The impact of any adjustment will depend on a thorough and balanced analysis.”
The review process is ongoing, and any potential changes to the fuel pricing structure will be announced following the ministerial decision based on RAC’s final advice.
