EDWARDS

Motorists can expect to face the full brunt of increased gas prices, which hit $58.80 ex-refinery this week on a three-dollar jump to a new record.

That price is what the gas stations and dealers pay to monopoly refinery Petrojam for the regular 87 octane.

Consumers are likely to see pump prices edging above $65 and closer to the $70 mark.

"The retailers are not in a position to absorb any of this increase as they would not be able to go to the market with the new level of cash flow that is now required to buy the product," said Errol Edwards, president of the Jamaica Gasolene Retailers' Association (JGRA).

Lobbying for subsidy

When asked whether the association would be lobbying for any form of subsidy, Edwards said that the secretariat would have wanted to put that request on the table, but had been unable to get through to Energy Minister Clive Mullings.

In fact, Petrojam's top executives were similarly unavailable, but the reason became clear later in the day when the refinery advised it was in talks to avert a crisis with tanker drivers.

Tankers had walked off the job but later returned to work.

Edwards, in the meantime, while desiring a subsidy to cushion prices, says it might be more practical to push for conservation.

He says the JGRA would also be lobbying for a review of the Petrojam pricing policy.

The price quoted by Petrojam includes a special tax, payable to the treasury, and quoted at $6.66 to $7.36 per litre of purchase, depending on the type of fuel.