Jamaica well positioned to handle oil price shocks, says minister

Speaking during Wednesday’s (March 11) post-Cabinet press briefing at Jamaica House, Williams highlighted the country’s Net International Reserves (NIR), which currently stand at US$6.8 billion, as a key buffer against sudden increases in oil prices.

“The good news is, we are positioned well in terms of our foreign exchange, if we have to buy oil at a higher price,” she said.

Williams noted that Jamaica remains fully dependent on imported fuel for sectors including transportation, electricity generation and manufacturing, making the maintenance of strong reserves critical to protecting the economy from external shocks.

“I tried to explain in Parliament yesterday (Tuesday, March 10), just the significance of us having robust Net International Reserves. It’s a buffer. It’s to ensure that we have foreign exchange to deal with any eventuality that happens,” she added.

Her comments come as global oil prices experience sharp swings amid escalating tensions in the Middle East.

Locally, motorists have already seen increases at the pump following last week’s price adjustment by state refinery Petrojam.

Diesel and gasoline each increased by $4.50, bringing the prices per litre to $166.75 and $161.82, respectively.