It takes three to tango!

Opposition Spokesman on Energy Phillip Paulwell is suggesting that Jamaica should prepare to carry out a diplomatic dance and re-engage Venezuela at a time when oil-importing countries could soon be scrambling to find new sources of fuel as sanctions against Russia escalate because of its war on Ukraine.

The former energy minister argued that Jamaica’s most reliable and logistically efficient near-shore source of crude oil and finished products is Venezuela.

Paulwell noted that Venezuela was still under heavy sanctions by the United States, which the Jamaican Government would not violate.

But the opposition spokesman is recommending another approach, which he said would require diplomatic dexterity.

He reminded his parliamentary colleagues that in 2013, the US government had expressed great reservation about the PetroCaribe Agreement.

“There was discernible concern in Washington about the growing close relationship between Venezuela and certain CARICOM states. We were asked to attend a summit in Washington to discuss the issues. The summit was chaired by then Vice President Joe Biden,” said Paulwell.

According to the former energy minister, CARICOM states used the opportunity to “speak certain truths to our American friends. We not only defended our position to continue with the PetroCaribe arrangement, but we also challenged the US administration to assist us with our energy security issues”.

As the sanctions bar any trade with Venezuela, Paulwell said it was now necessary for Jamaica to “approach our US partners requesting special dispensation to overcome the sanctions”.

However, he said he was not sure how Jamaica would overcome what was “a most glaring act of ungratefulness shown to Venezuela”.

“This ungraciousness, notwithstanding the billions of US-dollar benefits throughout the course of the PetroCaribe Agreement but also the US$1.5-billion write-off Jamaica received of our debt to Venezuela,” he said.

In early March, a high-level US delegation visited Venezuela to hold talks with the Nicolas Madura administration on energy-security issues. It is believed that if US sanctions are lifted, Venezuela could send up to 400,000 barrels of oil to US refineries.

On March 20, Senator Kamina Johnson Smith, Jamaica’s foreign minister, responding to Gleaner queries on the possibility of repairing soured relations with Caracas through the resumption of oil imports, said that the Daryl Vaz-headed energy ministry would determine any policy shift.

“There is no decision in respect of oil imports that would be taken that is not guided by the Ministry of Science, Energy and Technology. So any issues in respect of the need for more oil would be guided by them,” Johnson Smith said.

Jamaica currently sources both crude oil and finished product from Colombia, Ecuador, Brazil, and Barbados and is making arrangements to obtain oil from Nigeria.

In 2019, the Jamaican Government passed legislation to acquire Venezuela’s 49 shares in Petrojam and later placed the funds in an escrow account in a bid to escape US sanctions.

In his contribution to the Sectoral Debate on Tuesday, Paulwell also echoed a call by president and CEO of the Jamaica Public Service (JPS) Company, Michel Gantois, for the Government to cut taxes on electricity.

With taxes alone accounting for 16 per cent of electricity bills, the JPS boss recently indicated that his company had become a tax-collection agency for the Government.

According to Paulwell, the state-owned oil refinery, Petrojam, and petrol retailers can make a similar claim as the JPS.

In his presentation to lawmakers on Tuesday, Paulwell urged the Government to extend the 20 per cent discount for nearly half a million JPS customers beyond four months.

He said that oil prices have already increased by more than 40 per cent since the start of the year. Paulwell wants the Government to extend the concession for the entire year.

The opposition spokesman is also calling for an extension of the existing waiver of $4.56 per litre on automotive diesel oil that was granted to electricity generators and which will expire on April 30.

editorial@gleanerjm.com