Slow start for ULSD - Quick pick-up in demand expected

Chad Bryan, Gleaner Writer

President of the Jamaica Gasolene Retailers Association (JGRA), Derrick Thompson, is upbeat about the prospects for ultra-low sulphur diesel (ULSD) fuel, since its introduction last Monday.

"On Wednesday we tried to get a sense of what was happening. The uptake has been a little slow. I think people are still trying to get their bearings on this, despite the various publications on the places that they are available. But I think the uptake has initially been a little slow. In fact, however, I think as we progress in time, it will pick up," Thompson said.

Ixes-Roy Thomas of Rubis Energy Jamaica Limited, Jamaica's Shell licencee, also said that there has been an initial slow take-off for USLD. However, he is looking to not only sales at the pumps, but the prospects availability of the fuel raises.

"We need to focus on the widening market that this product has now opened up. When you can acquire a diesel Suzuki, every retailer, every new car dealer has the potential of bringing in a vehicle for you, which is going to be at least 20 to 30 per cent less. You buy the same vehicle in gas, it is going to be about 20 per cent more," Thomas said.

He also said that newer diesel-powered motor vehicles will need this type of fuel.

Senior retail manager of Rubis Energy, Damian Facey, declined to give an approximate figure as to the actual cost of ULSD, but instead said that the fuel will cost within eight to 11 per cent above regular diesel.

Facey further stated that the prices are subject to change, depending on the location of the service station, whether it is in Kingston or in the rural areas, as well as the retailer's pricing mechanism.