Cabinet approves bulk fuel policy for public sector

KINGSTON — Cabinet has approved a proposal to establish a framework agreement with eligible petroleum marketing companies, for the supply of bulk fuel to its ministries, departments and agencies.

Speaking at yesterday's Post Cabinet press briefing at Jamaica House, Minister with responsibility for Information, Telecommunication and Special Projects, Hon. Daryl Vaz, explained that the period covers July 2011 to June 30, 2013, at the weekly ex-refinery prices plus a fixed margin per litre.

He said that this will replace the current framework contract with government-owned marketing company, PETCOM, which will expire on June 30.

“This opens up all Petroleum Companies to do business with the Government,” the Minister said. However, he pointed out that there is an existing situation, brought to his attention by the Commissioner of Police, which indicates that a number of the companies have not signed on to these new contracts.

“I suspect that this has to do with the margin that the government has negotiated between the ex-refinery price and the selling price. It is causing us great problems, not only in government agencies but specifically for the Police,” Mr. Vaz said.

He noted that in the case of the Police, cars that need fuel should not have to drive long distances to obtain it. He also estimated that $40-50 million more per year could be saved with the introduction of the new policy.

By CHRIS PATTERSON, JIS Reporter