Williams: High oil price a mixed blessing

GOVERNMENT is viewing the increase in the price of oil as a “mixed blessing,” uncertain if the US$49.40 per barrel price would really benefit the country. Energy and Energy Industries Minister, Eric Williams, told Newsday, on the “one hand it is potentially a benefit, but since we import between 80 to 100,000 barrels a day, it means a higher energy bill.”

He added “It signalled mixed blessings,” saying Government was yet to review the implications. He acknowledged, however, that the increase in the price would be “more difficult on our Caricom neighbours, whom we are committed to assisting with their energy costs.” Asked if the implications would be discussed at this week’s Cabinet meeting, Williams said he wasn’t sure, since he would be in Jamaica for a petroleum conference. The price of crude oil is being pushed up as a result of the ongoing war in Iraq, and the high demand from countries like China, India and the USA. International commentators have forecast continued high oil prices, predicting prices could even rise to as much as US$50 per barrel. Prime Minister Patrick Manning’s 2003 budget was based on an oil price of US$25 per barrel.