Gov’t Monitoring Global Rise in Oil Prices

Minister of Finance and the Public Service, Hon. Fayval Williams, says the Government is closely monitoring the global increase in oil prices, stemming from the conflict in the Middle East.

She noted that since the United States and Israel launched aerial attacks on Iran on February 28, “we’ve seen oil prices go from about US$64 per barrel to US$74, an increase of about 16 per cent”.

“It is something that we’re watching closely and, of course, if the Government is required to assist [in mitigating the impact of rising oil prices], that is something that the Cabinet will deliberate on and then there will be an announcement to the country,” she said.

She was addressing Thursday’s (March 5) meeting of the Standing Finance Committee of Parliament in Gordon House.

Mrs. Williams noted that the Middle East produces more that 30 per cent of the world’s crude oil, making it the world’s leading oil-producing region.

Additionally, the world’s busiest oil shipping lane, the Strait of Hormuz, through which about 20 per cent of global oil and gas passes, has been disrupted.

“Jamaica is an importer of oil, and so what happens to oil prices in the global market is expected to have an effect on Jamaica,” she pointed out, noting that the extent of the impact will depend on how long the conflict persists.

The Minister said that the Government is placing greater focus on energy security and expanding energy resources.

“As a Government, we have to focus on energy security,” she said.