Reducefuel prices for allJamaicans - Mair
Published:Thursday | May 30, 2013 | 12:00 AM
GREGORY MAIR, the opposition spokesman on energy, is pushing for a level playing field in the pricing of heavy fuel oil sold by Petrojam to the bauxite industry as against the Jamaica Public Service (JPS), and, by extension, the Jamaican consumer.
In his contribution to the Sectoral Debate in Parliament on Tuesday, Mair contended that players in the bauxite industry purchased heavy fuel oil from Petrojam for 15 per cent less than the state-owned oil refinery sells to the light and power company.
"Why don't we level the playing field, have a real competitive environment in the fuel sector and give JPS, and, by extension, the consumers of electricity, the same status as the alumina/bauxite producers," Mair asserted.
According to Mair, the Bauxite and Alumina Industries (Encouragement) Act, exempts alumina and bauxite producers from paying customs duty or similar imposition on the importation of petrol fuel oil or diesel.
"Let JPS initiate a tender process where all providers of HFO/ADO (heavy fuel oil/automotive diesel oil) in the world will compete and where we will see the consumers of electricity benefiting from close to a 15 per cent reduction of the fuel cost, which would be approximately 10 per cent of our bills.
Bauxite industry enjoys reduced rates
I say this based on information I have in my possession. The bauxite industry purchases HFO 15 per cent cheaper than JPS," Mair told his parliamentary colleagues.
He explained that the HFO used in the generation of electricity is purchased by JPS from Petrojam at a cost of some $6 billion per month.
Turning to electricity theft, Mair wants the crafting of legislation to impose stiffer fines on persons involved in the illegal act.
"The Government must sit down with JPS and agree on a clearly defined strategy for tackling the theft of electricity," Mair said, noting that it was costing legal customers of JPS about $3 billion annually for illegal connections. The JPS is said to absorb a similar sum each year.