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Use reduction in oil prices wisely, says EPOC

Published:Wednesday | December 10, 2014 | 9:41 AM

The Economic Programme Oversight Committee (EPOC) is urging the Government to use savings from the fall in world oil prices wisely.

According to EPOC, oil prices have fallen by more than 30 per cent since January and this has benefited the Jamaican economy.

The Committee says if the downward trajectory continues for the next 12-18 months this will have significant effect on the country’s current account deficit.

It says some of the benefits include less US dollars spent to buy oil, and improved consumer spending power arising from reduced gasoline and electricity prices.

EPOC further says the Government and businesses stand to benefit from lower operating costs.

The Committee says further cuts in world oil prices will help to reduce the local inflation rate and debt associated with the PetroCaribe deal.

EPOC is also appealing to the Government to continue efforts to be more energy efficient.