EDITORIAL - Intensify search for low-cost energy solutions

Nine consecutive weeks of increases at the gas pump is creating much pain for motorists and business operators. Not unexpectedly, the struggle with gas prices is compounded by the hike in electricity bills, which many consumers have begun to complain about.

It is a fact that the price of oil per barrel is rising around the world, and fuel prices respond to international ebbs and flows, often resulting in consumers suffering gasolene spikes. But research shows that the price of gas differs dramatically from country to country, mainly because of at-the-pump taxes.

And although it is little consolation to the motorist in Jamaica, there are, in fact, some countries that are worse off. For example, in the United States where a gallon of gas has soared beyond the US$4 mark, economists there worry about the possible impact on consumer spending and the effect on the housing market.

Examples from the past teach us how high energy costs can hurt an economy. With the news that Jamaica experienced a little growth last year, it would be very disappointing if there were a reversal in fortunes because of soaring oil prices.

Bottom line: Government policy has a great deal to do with the pricing of gas, which explains the persistent grumblings about Petrojam's pricing formula, which has never been properly explained to the consuming public.

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To their credit, our political leaders have long recognised that even with assistance from Venezuela, the days of cheap, reliable energy are basically over. And for decades we have had conversations about how we can become less reliant on oil imports by developing renewable-energy sources. Take wind energy, where the technology has made rapid progress over time. However, we have failed to exploit this resource fully.

Jamaica may not have oil deposits in any appreciable amount, but the country is rich in solar and wind energy. It is puzzling that we have taken so very long to establish national goals to encourage businesses and householders, who can afford the start-up costs, to invest in wind and solar energy as strong alternative solutions to complement the dominant fossil fuel options.

There is improved technology developed by automakers which has increased fuel economy of the average vehicle. Why has there be no concerted effort to encourage importation of fuel-efficient vehicles by offering incentives to consumers?

Solutions do exist in the debate about surging oil prices. The problem-plagued contract for the supply of liquefied natural gas is hopefully still on the cards and on target for start-up in 2014. It is clear that there are no short-term solutions; however, our policymakers must make it a priority to invest in technology to protect consumers against the volatility of gas prices.

We suggest that the debate be opened up to a national audience in explaining exactly what the Government plans to do to combat the escalating price of gas. The debate should also indicate to consumers how they can take specific personal steps to curtail their use of gas, ranging from balancing the air in their tyres to cleaning their air filters and cutting speed. There is enough frustration to be found at the pumps, but solutions appear to be in short supply.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.