KINGSTON, Jamaica—Opposition Spokesman on Energy, Phillip Paulwell, wants the Government to indicate how long Petrojam has been operating under a price cap.

Describing the price cap as “tampering”, Paulwell noted that Petrojam was once consistently profitable.

“It is now entering its third consecutive year of significant financial decline. To our amazement, the minister [Daryl Vaz] announced that Petrojam was operating under a price cap. When was that institutionalised?

“Does that not interfere with the previously transparent process of determining weekly pricing of petroleum products?” Paulwell asked on Tuesday as he made his contribution to the 2026/27 Sectoral Debate in the House of Representatives.

Energy Minister Drayl Vaz told the post-Cabinet media briefing on April 14 that Petrojam had a $4.50 price cap on fuel, meaning the full price was not being passed on to consumers following the sharp rise in oil prices since war broke out in the Middle East on February 28.

Vaz indicated that the cap could not be sustained as Petrojam would rack up losses of $11.8 billion if it remains in place until June.

According to Paulwell, “The tampering with the Petrojam pricing mechanism increases suspicion about government interference in the affairs of the refinery”.

“If the Government wishes to help consumers especially now with the increase in price due to the war between the US and Iran, then it should adjust its tax intake at the pump, not by plunging Petrojam into more losses,” he said.

The Opposition Spokesman said Vaz must provide the Parliament with a full account of the operational status of the refinery and present a clear, credible and cost roadmap for returning Petrojam to profitability.

Said Paulwell, “The Jamaican people cannot continue to underwrite a failing enterprise in the absence of that transparency. The path forward for Petrojam was mapped out clearly during our administration. That plan included a programme of expansion and modernisation. The refinery is now more than 40 years old and continues to rely on outdated technology that hampers its efficiency and drives up operational costs. We do not require another consultant to produce another assessment of alternative operating options”.

According to Paulwell, Petrojam is being asked to carry water in a basket.

“In its current condition, the company will continue to record substantial losses year upon year, and the Jamaican taxpayer will continue to bear that burden without any clear prospect of recovery,” he said.

He reminded that the State-owned oil refinery has lost billions of dollars over the last three financial years.

-Lynford Simpson