ANY OIL refinery explosion is by its nature a dangerous occurrence, and we should be grateful that the midnight blaze at Petrojam was speedily put out without loss of life by staff and members of the Fire Brigade. One of 10 towers has been damaged, but because the plant is an integrated operation this has resulted in its closure, which means that finished petroleum products will have to be imported starting next week, if Jamaica's fuel requirements are to be met. Minister Paulwell has ordered a full enquiry into the cause of the blast.
While we await the outcome of that probe, the nation needs to be assured of the integrity of the security and mechanical arrangements at the plant, there having been several accidental fires at the facility in the past few years. Petrojam's operations are too crucial to the nation's economy for there to be frequent hiccups of the kind being experienced at present.
Coming so soon after Hurricane Ivan, this latest mishap will be costly to the island's economy. When this year's Budget was cast, our imports of crude oil were costed at about US$38 per barrel. For some time now the price of Brent crude has been over US$55 per barrel which, coupled with the present emergency, will cause Jamaica's fuel bill substantially to exceed the US$1 billion figure. This, in turn, will exert inflationary pressure on the cost of goods and services.
Minister Paulwell indicated yesterday that he had been advised that the refinery normally maintains reserves of some two weeks of petrol, so there is no reason for motorists to panic fearing a shortage. A shipment from Venezuela is expected next week Tuesday.
The refinery mishap has happened in the midst of the reconstruction period following the impact of Hurricane Ivan. The full impact will have to wait some two weeks of investigation. At this stage it is too early to state when full normality will be restored - meaning, finding the cause and repairing the damage.
Thus, securing adequate supplies is vital with the approaching festive season and what that entails for business activity. Whatever transpires, motorists should be advised to conserve use of petrol, mindful of the effect on prices which are subject to the international market movements regardless of the source.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
