You are here

What to do about PetroJam

PetroJam is the largest local provider of refined fuels for energy production and retail consumption and the only oil refinery in Jamaica. CAPRI is engaged in research to establish what is the best ownership and control structure for the this government-owned entity in order to best serve the interest of the Jamaica people and the needs of the petroleum market. It is a stylized fact that the cost of energy in the Caribbean region is among the highest in the world. Additionally, the cost of fuel in Jamaica has aided in making Jamaica’s household electricity expenses the highest in Latin America and the Caribbean. High fuel costs in Jamaica have been linked to the inefficient operations, and in particular, the pricing mechanism at PetroJam. Should the pricing mechanism and structure of the company be changed? In what way? Furthermore, stakeholders largely associate PetroJam’s brand identity with corruption, weak leadership, and a lack of transparency. How can this be addressed? From a strategy perspective, would a public-private partnership best balance the business continuity interests of PetroJam with the interests of the society? What specific form should it take? CAPRI invites your input.