A weak Jamaica $ and gas prices

HOW best can we as a country find a way to handle the disastrous effect of the disgusting fall in value of the Jamaica dollar against its major trading currencies, in particular, the United States dollar; as well as the almost weekly hike in the prices of petroleum products, which cannot be matched by movements on the international circuit?

At the rate at which things have been going, Jamaicans will have some brutal economic months ahead. The onset of the novel coronavirus pandemic has made things worse.

No one in authority seems to care as the vicious bidders line up for US dollars during weekdays, unmindful of what the average Jamaican is facing, or will face soon, if the value of the Jamaica dollar keeps dropping, and the domino effect that it produces.

As for petroleum prices, three months ago, on February 11 of this year, the ex-refinery prices of 87 gasolene was $122 per litre, while a litre of the 90 grade was $125, ex-refinery. On May 6, the ex-refinery prices were $147 for 87, and $148 for 90. Of course, marketing companies add their markups on the commodity, so you will see 87 and 90 fuel selling for a low of just over $160 per litre, to well over $200.

But when I check with people in other nations there has been little or no movement of petroleum prices over the last three months, although there has been motion, to and fro, in respect of the price of oil on the world market.

There have always been calls for full disclosure regarding the way that Petrojam calculates prices, but any feeble attempt over the years usually results in pushing of information that’s full of rhetoric.

It cannot be disputed that Petrojam has thrown $23 on the price of 87 and 90 petrol in three months. Over a longer period, the increase has been more.

Now we have heard, too, that the negative movement of the Jamaica dollar has little effect on the cost of petroleum products. Is that for real?

What’s for sure is that if the dollar continues to be flogged like a race horse unwilling to win a race, and Petrojam continues to push up the prices of its imported products, we can look out for some serious occurrences in Jamaica soon, which could have even more devastating implications than COVID-19.