OPPOSITION Leader Mark Golding is calling for the Government to tell the Jamaican people what it will be doing to cushion the effects of rising prices for goods and services that will, and have, followed from the Middle East War which erupted on February 28 when the United States (US) and Israel launched joint attacks on Iran.

Iran responded with attacks on US military bases and personnel in several Gulf states and also attacked civilian infrastructure throughout the region. The Islamic Republic also forced the closure of the crucial Strait of Hormuz through which 20 per cent of the world’s oil and gas flows. This has sent oil prices skyrocketing to as high as US$119 per barrel — the highest they have been since February 2022 when Russia invaded its neighbour Ukraine.

Addressing a press conference at the Old Hope Road headquarters of the People’s National Party (PNP) on Tuesday, Golding stated, “We’re now approaching the end of the second month of that conflict. We have seen the price of fuel at the pump going up week after week, we have been told by major corporate distributors and wholesalers in the food trade that food prices are going to start going up as well.”

He noted that the price increases will flow through to other critical inputs such as fertilisers, chemicals, medications, “all of the different products, plastic-related products, that have some form of petrochemical base in them — everything is going to be impacted by this”.

“The Government has been completely silent as to their response to this incipient crisis on the people; there’s no provision in the budget for any form of assistance,” he continued.

Golding pointed out that while Petrojam has indicated that it has spent US$5 million as of mid-March in order not to pass on the full increases to consumers, the State-owned oil refinery has been chalking up billions of dollars in losses over several years.

“So they’re in no position to finance that kind of subsidy and they’re going to be depending on Government for a bailout there, [but] there’s no bailout for them in the budget.”

He also reminded that the last PNP Administration, “had the foresight to enter into an oil-hedging programme to protect Jamaica from what we’re seeing now”.

“It was funded by a special tax that was dedicated to financing that oil-hedging programme which is essentially an insurance policy that if oil prices go above a certain figure per barrel, Jamaica gets a cash payment to cover that cost.

“This Government discontinued that programme, abandoned that insurance, but kept the tax in place and has been using it as part of the general revenue of the country.

“Now that we’re facing the horror of oil prices around US$100 per barrel — when the budget was cast at an assumption of US$60-odd per barrel — it’s a deplorable situation and the Government needs to come out and speak to how they intend to manage the impact,” Golding added.

“Are we going to see any targeted relief for PATH beneficiaries? Are we going to see any targeted relief for [Hurricane] Melissa victims?”

Golding noted that “people who have already suffered are now going to be impacted by a cost of living crisis”.

“What is to be done about them?” he said.

He also wanted to know the plans for low-income families who will bear the cost of increased prices for everything that they consume.

“Many governments have put measures in place to protect their populations, ours has remained mum,” he said.