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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Oil prices continue to inch up following the last-minute deal on the US fiscal cliff.

Brent crude rose to almost US$113 a barrel Wednesday, the highest since October 19, before easing to settle up US$1.36 at US$112.47.

Oil moved in tandem with other risky markets after the US Congress approved a deal to avoid automatic tax rises and spending cuts that were forecast to bring on a recession.

US fuel consumption, wavering since the financial crisis, would weaken further if economic growth spluttered.

Here in Jamaica, consumers are to see higher prices at the pumps this week.

Petrojam on Wednesday announced it will hike the price of E10-87 and E10-90 gasoline by J$1.33.

The increase is the third week in a row and takes the price of gasoline to a 10-week high.

Diesel price will rise by J$0.72 while the price of kerosene will fall by J$0.05 cents.

Propane cooking gas goes up by J$1.50 while butane rises by J$0.36 cents.

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The price of oil dropped a bit Wednesday after three days of increases.

Benchmark oil fell 53 cents to $93.14 per barrel Wednesday in New York.

Oil prices had increased more than $6 per barrel since Thursday following a positive report on the US job market. In addition, quarterly earnings for many companies have been stronger than expected.

Yet, the overall economy continues to struggle, which has fuelled speculation that the Federal Reserve may take action to promote economic growth.

A stronger economy means more demand for oil and other energy products. Oil demand is better than it was earlier in the year but hasn’t recovered to year-ago levels, said Michael Lynch, president of Strategic Energy & Economic Research.

Oil got a temporary boost Wednesday from a bigger-than-expected decline in US stockpiles. The Energy Department said oil inventories fell 3.7 million barrels last week to 369.9 million barrels. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a much smaller decline of 300,000 barrels.

But the economic news from Europe remains grim. The Banque de France said it expects the French economy to slip into recession in the third quarter. German industrial production and exports fell in June.

Traders will closely watch fresh economic data from China Thursday on inflation, factory production and retail sales. China is the world’s second-biggest economy and a huge importer of oil.

At the pump, the national average price of gasolene rose about one penny to $3.647 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s up nearly 27 cents from a month ago. It’s about two cents less than a year ago.

Brent crude, which is used to price international varieties of oil, gained 28 cents to $112.26 per barrel in London.

– AP

http://jamaica-gleaner.com/gleaner/20120809/business/business1.html

 

Baldwin Atkins (left), contract poultry farmer, meets Phillip Paulwell (second right), minister of science, technology, energy and mining, just before the start of a press conference to announce roll-out of the Best Dressed Chicken Cost Containment Initiative, held at Atkins' Farm at Osbourne Stores in Clarendon on Wednesday, July 11. Dr Claudette Cooke (second left), Jamaica Broilers Group's marketing executive, and president and CEO Christopher (right) look on. - Ian Allen/Photographer
Baldwin Atkins (left), contract poultry farmer, meets Phillip Paulwell (second right), minister of science, technology, energy and mining, just before the start of a press conference to announce roll-out of the Best Dressed Chicken Cost Containment Initiative, held at Atkins’ Farm at Osbourne Stores in Clarendon on Wednesday, July 11. Dr Claudette Cooke (second left), Jamaica Broilers Group’s marketing executive, and president and CEO Christopher (right) look on. – Ian Allen/Photographer

McPherse Thompson,