PROFESSOR Rosalea Hamilton, head of the MSME (micro, small and medium-sized enterprises) Alliance, is calling for clarity on Wednesday’s implementation of an increase in gas tax.

“The ripple effect of this tax is devastating, as it affects all sectors. Therefore, more clarity and transparency are required on how it is being applied,” Hamilton told Auto.

HAMILTON… the ripple effect of this tax is devastating, as it affects all

Hamilton said with this week’s increase in fuel prices, a representative of the state-run refinery Petrojam should explain how the new tax is applied.

“It’s the responsibility of the people who have the authority to make these decisions to properly inform the public. They are to say, very clearly, that in addition to the US Gulf reference price and movement of the American dollar, we now have a tax of whatever the figure is so that we’re all clear,” she said.

According to Petrojam’s weekly billing prices, the price of gasolene went up on Wednesday by $2.31 per litre, while the price of diesel rose by $2.50 per litre.

The professor said this situation compounds an existing problem of Petrojam’s pricing formula “which is not transparent”.

However, in confirming the application of the new tax on fuel prices on Wednesday, Winston Watson, managing director of Petrojam, said: “The tax was applied and the effect was minimal. The tax is a like-for-like replacement.”

Watson explained that the Government had replaced the Custom User Fee (CUF)

THE EDITOR, Sir:

IN RESPONSE to my letter published on Friday, January 25, and a response by Petrojam Limited on page A9 of your opinion page of Tuesday, January 29, I felt compelled to respond, as they mentioned my name and I found this article a bit disconcerting and arrogant in light of what is happening to this section of the consuming public.

How can a product be said to be ‘up to par’ when it does not meet or exceed international standards? Why is Petrojam considering importing ultra-low sulphur diesel, until their refinery is upgraded? Isn’t this an admission that the present diesel oil on the market is not ‘up to par’?

Countries and companies do not unilaterally set standards and have a minister with oversight for energy sign off on same and then say you have adhered to prescribed standards, nor does the ‘Government of Jamaica Petroleum Quality Control Act’ mean anything if they are not in keeping with international standards.

To take it to the ridiculous, Jamaica might just as well start researching the setting of Jamaica Standards for Nuclear Fusion as this may be the answer to mankind’s future energy solution.

For Petrojam to say that they have adhered to these standards and are in compliance with them is hogwash, when owners of diesel motor vehicles are suffering physical, emotional and financial stress because of this ‘up to par’ diesel oil.

uneconomical product

I am sure that, except for the bauxite companies, Petrojam has one of the largest contingents of chemical engineers on staff. These engineers should advise themselves that were the manufacturers of diesel engines to develop an engine to genuinely manage this high sulphur content, then the metal or alloy used would render the cost of that engine uneconomical, and what, then, of the emissions?

There are protocols and standards which are recognised internationally by conventions and otherwise, that countries, even Third World ones like Jamaica, should adhere to.

Jamaica does not manufacture diesel engines, so they cannot set standards for engines outside of the specifications of manufacturers who are adhering to international standards.

In the article, Petrojam mentioned being environmental stewards and refer to the blending of ethanol, thereby reducing emission of lead. While this is commendable, it was not their environmental consciousness that achieved this but, rather, it was as a consequence of the main aim of reducing the cost of input into petrol to ensure greater profitability.

HUGH SANDFORD (PE)

Satyn@cwjamaica.com

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Phillip Paulwell
Phillip Paulwell

THE MECHANISM used by the state-owned oil refinery Petrojam to set weekly gas prices has sparked a verbal exchange between Energy Minister Phillip Paulwell and his opposition counterpart Gregory Mair.

This after Mair, in a statement released on Wednesday, criticised Paulwell for, among other things, failing to address what the opposition spokesman asserted was a lack of transparency in Petrojam’s pricing mechanism.

But at a Gleaner Editors’ Forum on Wednesday, the minister revealed that Mair has missed two opportunities to have the process explained to him by Petrojam.

He said, when Mair first raised the concern, he brought it to the attention of the National Energy Council, of which the opposition spokesman is a member, and an emergency meeting was arranged to “fit Mr Mair’s schedule”.

“The first time we put on the table, he said he could not make it. So we shifted everybody and we arranged a special meeting of the energy council where Petrojam gave a detailed presentation on its energy pricing,” he explained.

“Mr Mair did not attend the meeting … I am disappointed with Gregory, because he is now an established member of the Energy Council,” he added.

However, in a swift response, a strident Mair acknowledged missing the meetings, but insisted “I am not the person they should explain it (the pricing mechanism) to, it’s the people of Jamaica.”

“What we want to know is the actual numbers used to arrive at the prices. If there is nothing to hide, why can’t the public know the formula,” he insisted.

Mair criticised the energy minister for failing to act on several issues that could reduce energy costs to Jamaicans.

One of those issues, he noted, was that “to date, there is no transparency in the fuel pricing mechanism used by Petrojam.”

“Any unfair pricing is inevitably a cost to the Jamaican people and not the Government, as it is the consumer that pays for the fuel,” Mair said.

“This is made worse given the fact that the Office of Utility Regulation stated publicly that Petrojam had been overcharging for fuel for electricity generation over an extended period,” he added.

 

livern.barrett@gleanerjm.com

Energy Minister Phillip Paulwell.

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Energy Minister Phillip Paulwell - File photo
Energy Minister Phillip Paulwell – File photo

Jerome Reynolds, Gleaner Writer

Energy Minister Phillip Paulwell has ordered the Board of Directors of Petrojam Limited to undertake a probe into last week’s release of noxious fumes from the refinery, the second time in five months.

Last Wednesday, a number of people in the vicinity of the Spanish Town and Hagley Park and Molynes roads in St Andrew, complained about feeling ill as a result of the fumes.

Petrojam has written to the National Environment and Planning Agency (NEPA) indicating that during site clean-up operations, the liquid contents of a five-gallon plastic pail were released on to the ground.

The energy minister has expressed grave concern about what he says is the safety and security practices at Petrojam, noting that is the second time in six months that noxious fumes have been released from the refinery.

Paulwell says he is also concern Petrojam did not make a full report of last week