Monique Hepburn, Staff Reporter
PAULWELL
WESTERN BUREAU:
CONSUMERS WILL not immediately reap savings in their utility bills from the concessionary oil deal the Government recently struck with Venezuela.
In fact, indications are that real benefits will not come until after the Government's oil refinery, Petrojam, has been upgraded.
"They will not readily see a reduction in the near future because the deal is really a loan facility," Phillip Paulwell, Minister of Commerce, Science and Technology, told The Gleaner yesterday.
"What it will mean is that we will not pay up front up to 40 per cent for petroleum products we receive from Venezuela," he added.
Mr. Paulwell explained that the first phase of Petrojam's upgrade project would commence in the third quarter of 2006.
He said the project would take two years, during which time a new reformer would be installed to allow the breakdown of heavier crude to lighter fuel.
"We will be putting in place a sulphur-treater that will enable us to produce lower sulphur content in our products and will enable us to do the expansion to 50,000 barrels per day," Mr. Paulwell added.
The Commerce Minister's statements came in the wake of ongoing protests across the island in which consumers have been lashing out against the increase in fuel prices, utility rates and transportation costs.
DAMAGE CLAIMS
Tensions mounted after it was announced on Wednesday that the Office of Utilities Regulation granted the Jamaica Public Service Company permission to recover $458 million in damage claims through customer billing. The amount represents a third of the $1.5 billion it originally requested in the wake of Hurricane Ivan.
Mr. Paulwell, who also has responsibility for energy said his ministry would be pushing its energy conservation programme more forcefully as there was an even greater need for the efficient use of energy.
The conservation programme involves two aspects. Firstly, a public education programme and secondly, the establishment of an Energy Fund to be done in collaboration with Venezuela.
"We will have resources to assist companies and householders to do energy audits to determine levels of efficiency of the use of energy and we will enable companies to procure equipment to do refurbishing to achieve greater energy efficiency," he said.
