Vaz: Jamaica monitoring Middle East conflict for fuel price impact

Energy Minister Daryl Vaz says Jamaica is keeping a close watch on the conflict in the Middle East and its potential effects on the country’s fuel economy.

Vaz noted that there have already been upward movements in international oil prices.

“The extent of any local impact will depend on how sustained these international price movements are,” he said while speaking at a post-Cabinet press briefing at Jamaica House on Tuesday.

He added that the pricing mechanism used by Petrojam, Jamaica’s state-owned oil refinery, also helps to mitigate full exposure to sudden price shocks.

“It is important to understand that crude oil and finished petroleum products are traded in separate markets, and movements in crude oil prices do not automatically or proportionally translate into local pump prices,” Vaz said.

He said Petrojam continues to closely monitor changes in the US Gulf reference prices for finished petroleum products, noting that these serve as a primary pricing benchmark for the region and determine Petrojam’s ex-refinery prices.

“Based on early analysis of the US Gulf reference, fuel prices have been trending upward in an apparent response to the current US-Iran tensions. We will continue to assess developments carefully and keep the public advised and informed.”

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