Chairman of the Petrojam Review Committee, PRC, Chris Zacca says the Andrew Holness-led administration will not need a second expert opinion on the recommendations it made to privatize Petrojam.

Yesterday, the Zacca led PRC recommended that the State-owned oil refinery be leased to the private sector.

It says this is the best case scenario for the long term viability of Petrojam and for it to continue to be of benefit to the government and people of Jamaica.

He’s also confident the Prime Minister will make the right decision regarding the future of the State-owned oil refinery.

Mr Zacca says despite some efficient employees, Petrojam has major operational challenges.

Meanwhile, the Petrojam Review Committee, PRC, is the latest independent body to conclude that the State-owned oil refinery’s pricing mechanism lacks transparency.  

The Committee’s report is recommending that immediate measures be put in place to address the pricing structure at the facility. 

Last year, an Auditor General’s report also raised concerns about the company’s pricing mechanism and revealed there were no formal minutes of the Pricing Committee’s meetings to decide on weekly fuel prices.

Mr Zacca says Petrojam’s pricing mechanism troubled the PRC.

He says in the interim the government’s policy should be clear that the non-transparent pricing practices must cease.

He says the PRC was also unable to determine which category some of the price adjustments belonged to, including what was referred to as “smoothing”. 

Meanwhile, the Committee has also recommended that all terminals post their prices at the same time to spark competition.

Chris Zacca, Chairman of the PRC, speaking last evening on Nationwide@5.