Jamaica gas prices under review

Petrojam currently uses US Gulf Coast (USGC) prices form the basis of its ex-refinery prices.

KINGSTON, Jamaica, Friday February 10, 2012 – Weekly price increases at pumps across the country since December are under review.

The Jamaican government is looking into mechanisms used by Petrojam for calculating the price of petroleum products.

The Petrojam’s website showed that prices of E10 (87) gasoline have increased at the pumps every week since December 22 last year, moving from $93.72 then to $100.28 at present.

Meanwhile, E10 (90) and diesel fuel showed similar increases, moving from $95.37 and $98.91 respectively on December 22 last year to $101.93 and $103.93 today.

A source in the Ministry of Science, Technology, Energy and Mining, who preferred anonymity, said the matter was engaging the attention of Minister Phillip Paulwell. He met with representatives of the Jamaica Gasoline Retailers Association, and the Jamaica Association of Petroleum Marketers separate yesterday.

Meanwhile, assurance has been given that government was looking at how it could best address the matter.

Opposition spokesperson for industry, commerce and energy, Greorgy Mair described Petrojam’s pricing policies as being deeply flawed, and noted it could affect the price of electricity for the Jamaican consumer.

Petrojam currently uses US Gulf Coast (USGC) prices form the basis of its ex-refinery prices. Petrojam said its main trading partners, Mexico, Venezuela and Trinidad and Tobago, also use the USGC prices.

However, an audit done by the United States-based consulting firm Centennial Group concluded that the cost of petroleum and related products could be much lower if Petrojam changed its pricing mechanism. Click here to receive free news bulletins via email from Caribbean360. (View sample)