Fuel price hike fears mount

By Kemon White

Consumers are being urged to brace for an increase in fuel prices.

This comes against the backdrop of the current conflict involving Iran, Israel and the United States in the Middle East, which has spread to neighbouring countries.

Oil prices have climbed further as the war in the Middle East entered its fifth day, triggering declines in stock markets across the United Kingdom and Europe amid fears of a prolonged conflict.

Economist Janiel McEwan has advised that, where possible, motorists should consider refuelling daily is urging the wider population to prepare for potential increases in electricity bills.

With Donald Trump, predicting that the war could last up to four weeks or longer, McEwan said “the more it continues, and (with) the Strait of Hormuz being closed, we will start to see the price continue to rise, moving to levels of probably a hundred dollars per barrel.”

With Jamaica’s electricity being overwhelmingly dependent on fuel, he predicted that “we may see the surcharge reflected in our bills if this war continues.”

When asked about the possible impact in Jamaica, Elon Parkinson, Communications Manager at Petrojam, said the analysis will be done on Wednesday to determine if the prices will fluctuate.

“We do the analysis every Wednesday morning at our pricing committee meeting; we look at all of the variables that are in front of us,” he explained, adding that “as we speak, that information is being collated right now, in preparation for our meeting on Wednesday morning.”

The outcome of that meeting will be shard with the public on Wednesday afternoon, as usual, advising “whether the prices of fuel is going to be stable, going up or down.”

McEwan and Parkinson were both speaking Tuesday on Radio Jamaica’s Beyond the Headlines.

The United States and Israel launched a full-scale attack on Iran over the weekend, claiming their action was aimed at destroying that country's nuclear programme.