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Stabroek News

Sinking in oil - Jamaican import bill increases by a third
published: Friday | May 18, 2007


Ross Sheil, Staff Reporter

Jamaica's national oil bill rose by almost one-third last year to over US$1.7 billion (J$116 billion) fuelled by rising prices that failed to deter increased consumption.

The eight per cent increase in consumption came despite efforts by Government to encourage energy efficiency and to adapt renewable sources of energy.

Managing director of the state-owned Petroleum Corporation of Jamaica (PCJ), Dr. Ruth Potopsingh, told The Gleaner that Jamaicans could do more to adjust their consumption habits. Famously the peak period of energy consumption in Jamaica is in the early evening when people return home - not during midday peak production as is the case in economically developed countries such as Japan.

"I think we have to be more conscious of how we use petroleum in terms of transportation. Car- pooling is one, and sharing trips, there is a lot we can do even as families," said Dr. Potopsingh.

Diesel-powered barge

Asked to explain the increase in consumption, she could not be specific. However, she said a likely factor was the new Jamaica Energy Producers (JEP) diesel-powered barge, which generates electricity for the Jamaica Public Service's (JPS) power plant in Old Harbour, St. Catherine, to which it is attached.

It was at the June launch of the barge that Prime Minister Portia Simpson Miller made public Government's surpassed prediction of a US$1.5 billion (J$102 billion) oil bill for the year.

Government is hoping to reduce the national dependence on petroleum imports with its plan to use ethanol as the 10 per cent fuel enhancer in Jamaican gasolene. Ultimately intended to be produced from Jamaican-grown sugar cane, the 'E10' blend of ethanol will replace imported MTBE.

However, Dr. Potopsingh was unable to say when E-10 would be available at the pumps following the successful trial that used a range of government vehicles. Among other considerations, storage facilities would have to be built, as well as public education, to assure people about the new fuel blend, she said.

Dr. Potopsingh said she would continue to urge the ministry to bring on stream the US$10 million (J$681 million) National Energy Fund. Due to loan funds to renewable energy and energy-saving projects, the facility has been stalled by competing priorities within the ministry. A decision also had to be made, forced by a lack of interest, to abandon plans to use private sector financing and instead use only state funds.

ross.sheil@gleanerjm.com

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