Mullings

Edmond Campbell, Senior News Coordinator

After recording staggering sales of more than $5.5 billion for financial year 2004/2005, the state-run Petroleum Company of Jamaica's (PETCOM) profit and loss account showed an operating loss of nearly $30 million.

In 2003/2004, the company chalked up an operating profit of $44.89 million and ended that financial year with a net profit of $25.69 million. However, the following year the company closed the period with a net loss of $18.85 million.

President of the Jamaica Gasolene Retailers Association (JGRA), Trevor Heaven, said the operating loss is a disappointment when the massive sales are taken into account.

"One would expect that their margins on all grades of product are in line with the other marketing companies, and so we believe the PETCOM stake of the business should put them in a profit situation rather than a loss position," Heaven told The Sunday Gleaner.

Concerns

Opposition spokesman on energy, Clive Mullings, recently raised a number of concerns in relation to the operations of PETCOM.

Among the issues highlighted by Mullings was a $47.87 million in bad debts for 2004/05, representing a more than 800 per cent increase over the $5.44 million for doubtful debts in 2003/04.

"What is the reason for all these bad debts when you are turning over sales of $5,600 million dollars a year?" he enquired.

Meanwhile, the JGRA president told The Sunday Gleaner that PETCOM was leading the way in terms of lower prices on the market.

PETCOM, with some 35 stations across the island, has contracted the operation of most of its outlets to private operators.

PETCOM figures