Fri | Dec 2, 2016

PSOJ worried about possible Petrojam sale

Published:Friday | February 20, 2015 | 8:32 AM

The Private Sector Organisation of Jamaica (PSOJ) is seeking information about the possible sale of some of the Government’s shares in Petrojam.

It was reported in The Gleaner on Wednesday that Venezuela was selling its 49 per cent stake in Petrojam and energy minister Phillip Paulwell was quoted as saying the Government is looking at reducing its stake.

In a release yesterday, the PSOJ said it was concerned that the sale of such an important entity could place it in third party hands without appropriate debate and consultation with stakeholders.

PSOJ president, William Mahfood, is calling for Paulwell to provide an appropriate response and assurances about the transparency that will be applied to any divestment of Petrojam.

 

PSOJ president, William Mahfood.

The refinery supplies 80 per cent of the local non-bauxite market and 70 per cent of the national market.

And the PSOJ says it is also worried that the pending sale could be a driving force behind the lack of transparency of the price setting mechanism used by Petrojam.

The organisation theorises that the pricing mechanism could be used as a means of increasing the profitability of the company in order to improve the value.