By Robert Lalah, Staff Reporter
Motorists at the Total gas station at Heroes Circle, Kingston, late yesterday evening stocking up on petrol as the price of gas is expected to increase as a result of an explosion at Petrojam early yesterday morning. Commerce Minister Phillip Paulwell has urged motorists not to panic. - NORMAN GRINDLEY/Staff Photographer
AN EXPLOSION and fire at the Petrojam oil refinery on Marcus Garvery Drive in St. Andrew yesterday, will trigger a jump in the price petroleum products, according to Commerce, Science and Technology Minister Phillip Paulwell.
All operations at the refinery were halted after the explosion, which did extensive damage to one of 10 towers at the refinery. The blaze was extinguished within half an hour by employees of Petrojam and members of the Jamaica Fire Brigade.
Mr. Paulwell said yesterday that normal operations at the refinery will not be resumed until the tower is repaired. He said the country will, therefore, have to import finished petroleum products in order to meet local demand. In light of this, he added that Jamaicans should expect an immediate increase in the price of all petroleum products.
REACTION AT THE PUMP
"There will be an immediate reaction at the pumps as a result of the difficulties being experienced at Petrojam. The price of the products will increase because more money will have to be spent in order to import finished products," he explained.
The minister added that he has already made contact with suppliers in Trinidad and Tobago, who have pledged their co-operation in securing emergency supplies for Jamaica. He said he will also be looking to Venezuela as another source.
When asked about the volume of finished products that will have to be imported, the minister said it would be the equivalent of 26,000 barrels a day. He declined to disclose the monetary value of this, however. Mr. Paulwell did mention, however, that he expected the $1 billion oil budget to be exceeded as a result of the nation having to import more than expected.
IMPORTED FINISHED PRODUCTS
"I am certain that the $1 billion mark will be exceeded because of the fire," he said.
Representatives from Petrojam, who said the cause of the fire was still unknown, declined to estimate the length of time it will take for the damaged tower to be repaired, saying the assessments had not yet been completed.
Minister Paulwell took the opportunity yesterday to urge Jamaicans not to panic, but to do everything possible to conserve. He encouraged motorists to become involved in car pooling as one method of conservation.
"I want to ensure the Jamaican people that there is no need for panic. We have supplies in storage for the next couple of days and we will be ensuring imports. We are doing everything possible to minimise the disruption," said Minister Paulwell.
