OPPOSITION spokesman for Industry, Commerce and Energy, Gregory Mair has expressed concern that the pricing mechanism of petroleum products sold by Petrojam may be flawed.

Mair tabled a series of questions to the Minister of Energy, Mining and ICT, Phillip Paulwell in Parliament yesterday seeking clarification on the pricing mechanism .

Mair said that while there are systemic problems in our energy sector that need adequate attention in the short, medium and long term, he is of the view that as a first measure, in the short term, the Government should assess the pricing mechanism that Petrojam uses for its products which ultimately directly affect the price of electricity for the Jamaican Consumer.

The questions posed were:

Can the Minister give a detailed explanation of the pricing formula and/or mechanism being administered by Petrojam for its petroleum products?," he asked.

Does the Minister believe that the present pricing mechanism is realistic and is a true reflection of the cost which Petrojam incurs for its petroleum products, and if so why?

Does the Minister agree that an entity other than Petrojam should administer the pricing of its petroleum products?

Would the Minister agree that, given that the producers of electricity purchase diesel and heavy fuel oil from Petrojam and passes on this cost directly to the consumers, that in order to reduce the cost of electricity in the short term, a realistic pricing mechanism should be implemented and in due course administered by an entity external to Petrojam?

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