Gas prices will be going up by at least $10 a litre tomorrow when the 15 per cent tax on fuel takes effect.

This is the biggest increase in gas prices in recent years.

The state owned oil refinery Petro-jam announced the $10 increase today.

However, when retailers add their profit margin the cost for a litre of gas could go up by as much as $13.50.

Petrojam says with a $10.45 increase, a litre of E-10 87 will now be sold for $80.45.

E-10 90 gasoline will be now be sold for $81.81.

The price for a litre of automotive diesel oil will go up by $10.48 cents to sell for $80.35.

But the president of the Jamaica Gasoline Retailers Association, JGRA, says when dealers add their mark ups the increase will be higher than the Petro-jam prices.

In the meantime with world oil prices set to climb higher as the demand for oil rises during the current winter, gas prices will continue to spiral.

This means that by early next year, it could cost more than $100 for a litre of gas.

The JGRA, president Trevor Barnes says higher gas prices will mean lower volumes of sales for dealers.

As a result, he says more gas station may start operating self-serve business as they try to cut cost.

Mr Barnes acknowledges that this will mean job cuts, but he says it is not avoidable if some gas stations are to survive.

However, Mr Barnes could not says whether the increased operational costs would force some of his members out of business.