Susan Smith, Staff Reporter
DACOSTA
EFFECTIVE TODAY motorists have to spend at least $8 more for every $100 of gasoline they purchase.
This results from an eight per cent hike on local gasoline prices published yesterday by Petrojam, the state owned oil refinery, in a statement to marketing companies. Distributors and retailers will then add their respective margins to the ex-refinery prices.
Chairman of Petrojam, Noel daCosta, explained yesterday that the increase was a direct result of the record hike in world oil prices and the devaluation of the local currency in relation to the United States dollar. He said both of these factors made the increase "a bit higher than normal."
Last week world oil prices jumped as high as US$67.10 per barrel, according to reports from the New York Mercantile Exchange.
"We have no control over the increase," said Mr. daCosta, who reminded the nation that the entire oil-consuming world is also experiencing a similar challenge.
Asked by The Gleaner whether the price increase by Petrojam could have been tempered to a smaller percentage, Mr. daCosta said, "We don't usually absorb the cost. Oil price is a commodity with an international benchmark and if you sell below that your operation won't be viable," he explained. Mr daCosta added that oil has to be paid for in foreign exchange and, therefore, movement of the exchange rate must affect local prices.
Mindful that consumers will have to bear the brunt of the cost the oil official is urging consumers to conserve.
"We need to get serious about conservation efforts. Increase in oil prices focuses our minds on the need to conserve on our use of energy but this only last for a few days," he noted.
He suggested that people car pool and not drive around unnecessarily. "It's not going to get better," warned the chairman.
In an attempt to clear up the misconception that because of agreements such as the San Jose and Petro Caribe Accords Jamaica gets oil at discount prices he said: "We are getting at world market prices and we have to buy the finished product at the U.S. Golf Coast reference price."
BILLING PRICE PER LITRE
| Unleaded (87) | | $43.98 P/L | from $40.46 P/L |
| Unleaded (90) | | $45.42 P/L | from $42.17 P/L |
| Auto diesel | | $41.01 P/L | from $38.22 P/L |
| Kerosene | | $41.50 P/L | from $38.70 P/L |
| Liquid Pet. | | $23.23 P/L | from $22.84 P/L |
