Iran-US standoff causing energy jitters - former JGRA head
Published:Wednesday | May 9, 2018 | 12:00 AMChristopher Serju/Gleaner Writer
Jamaicans should continue to track developments and brace for fallout from Tuesday's announcement by United States President Donald Trump that he intends to pull out of the Iran nuclear accord, Leonard Green, past president of the Jamaica Gasolene Retailers Association (JGRA), warned yesterday.
"There should be jitters. Because of the unpredictability of the pricing, there is a possibility that we could see a sharp increase [in gasolene prices] as is anticipated in the United States, particularly based on where Petrojam references its price - on the West Texas Index," Green told The Gleaner. "So if the prices are increased over there, we expect to probably see an increase locally. The risk is there, and we don't know what could happen," the businessman warned.
Green's comments came in the wake of Energy Minister Dr Andrew Wheatley's failure to make any mention of the issue during his keynote address to the JGRA trade show at The Spanish Court Worthington, New Kingston.
The spectre of the White House reimposing sanctions on Iran has sparked concerns about the potential global impact. Yesterday, European leaders were scrambling to salvage the Iran nuclear accord by opening direct talks with Tehran, while anticipating battles with Washington over European business ties with Iran.
COULD IMPACT JAMAICA
"I know the minister didn't touch on one thing that has serious implications for us, too. I know he spoke about the oil price regime two years ago. But if you have been following the news, you would have known that President Trump has made it very clear that he is pulling out of the commitment to Iran," Green related.
"So the United States is already gearing up to see the price go up to the highest level in four years. Our pricing is indexed against the West Texas Index, and so it might have implications. So I'm sure the minister is going to have to face another situation, with external forces affecting the economy of Jamaica," Green pointed out.
Pressed for a response on Government's contingency plan, Wheatley said that the country would "have to look at more conservation and use more efficient practices as we deal with energy management".