WILLEMSTAD – Fuel prices on Curaçao may seem simple at the pump, but behind every liter of gasoline or diesel lies an 11-part pricing formula regulated by the Regulatory Authority of Curaçao (RAC).
As fuel prices rise sharply again this month, RAC has provided a rare inside look at how the final price is determined.
According to the regulator, the price of gasoline and diesel is made up of 11 separate cost components.
These include:
the purchase price,
import taxes,
fuel supply security charges,
Curoil’s margin,
excise taxes,
surplus or deficit corrections,
cross-subsidies,
wholesale turnover tax,
dealer margins,
and retail turnover tax.
The largest and most volatile part remains the purchase price — the actual international market cost of the fuel itself.
That purchase price forms the starting point for everything else.
RAC says Curaçao’s pricing model is designed to create transparency and stability.
Rather than allowing private companies to freely set prices, the regulated model ensures that consumers pay based on a structured and monitored system.
One lesser-known element is the “recovery” factor.
This mechanism corrects differences between projected fuel costs and actual market purchase prices after the fact.
If fuel was more expensive than estimated, consumers later pay the difference.
If it was cheaper, adjustments can lower future prices.
Some tax elements within the formula may temporarily be reduced to zero depending on government policy or economic conditions.
That flexibility can be used to reduce price pressure.
The RAC says the formula is reviewed monthly and adjusted based on international price movements and available stock.
For consumers frustrated by repeated increases, the explanation highlights how little control local authorities have over the largest price driver: the global oil market.