CAC CRANKS UP WATCH ON PRICE INCREASES

   The Consumer Affairs Commission (CAC) has cranked up its surveillance of the price increases on consumer goods offered by retailers, manufacturers and wholesalers, in the face of rising oil prices on the world market.
   “From what we are seeing now, grocery prices are still flat. However, we are still in the lag time before measurable increases show up so we are closely monitoring the situation,” Raymond Pryce, director of research at the CAC, said.
   “We’ve met with the gasoline retailers, and we will be having meetings with the distributive traders to ensure that there are no unfair increases passed on to the consumers,” he added.
   “If we have someone whose pricing is out of sync with what we think is fair, we will directly contact them, and rectify the situation,” he said.
   Members of the general public have been complaining of ‘price gouging’ as some retailers seek to cash in on the barrelling increases in crude oil on the world market by jacking up the prices on their inventories. A release from the National Workers’ Union (NWU) charged that there was some sort of ‘price collusion’ going on and urged greater transparency and accountability by oil marketing companies.
   However, the CAC could not confirm these reports.

SIGH OF RELIEF
   Jamaica is a beneficiary of mechanisms to procure crude oil such as the San Jose` Accord through which Venezuela and Mexico are mutually committed to supply the net imported domestec oil consumption of several Central American and Caribbean countries. Under the oil facilities, the price per shipment is reference to world price, with payment made within 30 days of delivery.
   In the meantime, consumers who were bracing for possible price increases on their monthly electricity bills will breathe a sigh of relief as the fuel cost will not be passed on to them in this billing cycle.
   “The rising fuel costs have not yet begun to impact on us, and although fuel prices on the world market impact directly on consumers, they won’t be seeing the increases on their current bills,” Winsome Callum, manager of corporate communications at Jamaica Public Service (JPS), said.
   JPS is seeking a rate increase based on non-fuel costs which, if granted, could be as much as 18 per cent, to become effective as of June 1 this year.
   “There is, however, no guarantee that they will get that increase, it is all under consideration,” David Geddes, communications manager at the Office of Utilities Regulation (OUR) said.
   The OUR is expected to hand down a ruling on the new tariff regime for the JPS at the end of May.
   The new tariff regime beginning June 1 will see competitive bidding to provide additional generating capacity, and issues such as ‘guaranteed standards’ as it relates to the services the utility company offers to the country will be enforced, and the penalties will be increased.