Paulwell renews call to scrap oil hedge levy amid record fuel prices

The Opposition spokesman on energy Phillip Paulwell is renewing calls for the government to scrap the oil hedge levy saying it is unnecessarily contributing to higher fuel prices at the pumps.

"There is no need for the government to collect the hedge levy because it has long abandoned the hedge protection against oil price increases," Paulwell said in a statement.

He was reacting to the record fuel prices announced yesterday with the addition of $2.60 for each litre of gasoline. It's costing, at the minimum, $137.51 for a litre of E-10 87 octane gas. E-10 90 octane is being sold for a minimum of $140.14 per litre.

"The record-breaking increases on petroleum products a day before Emancipation Day is unprecedented and unconscionable," Paulwell said.

The oil hedge levy was implemented by the last People's National Party Administration to protect against oil price instability being passed on to consumers.

According to Paulwell, the government has the power to remove the levy to ease the burden of fuel price increases.

He also accused the government of being short-sighted in its approach to global issues saying the movement of oil has exposed Jamaica to unexpected shocks.

The former energy minister says as long as there is instability in the Gulf region and the unsettled conflicts among key oil producing countries, the price of the commodity will remain uncertain.

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