Petrojam raises diesel price cap as global oil volatility hits Jamaica

Petrojam is changing the way it sets fuel prices in Jamaica, with the weekly movement limit on diesel products rising from $4.50 to $12.50 per litre as of June 11, 2026. The state-owned refinery says the adjustment is intended to help it cope with major disruptions in the international energy market, including price swings linked to conflict involving the United States, Israel and Iran.

The company said the former pricing arrangement left it carrying close to J$3.6 billion in additional costs from late February to the end of May, as world oil prices moved sharply higher. Petrojam said that during that period, Jamaican customers did not bear the full increase in international prices.

Under the revised system, weekly changes for automotive diesel oil and ultra-low sulphur diesel will be capped at $12.50 per litre, whether prices are moving upward or downward. Petrojam said the approach is meant to keep domestic fuel prices closer to international benchmarks while still limiting the immediate effect of severe market movements on consumers.

The company said the mechanism will also apply when global prices fall, allowing reductions to be passed through proportionately. Retail pump prices will still depend on the markups applied by fuel dealers.

In the latest price schedule, automotive diesel is set to rise by $10.50 per litre, while ultra-low sulphur diesel will increase by $12.50. Both 87 and 90 gasoline will decline by $0.25. Kerosene will move up by $4.50, while propane will fall by $0.56 and butane by $0.98.

On the Jamaica Stock Exchange, the main JSE index gained 781 points, while the Junior Market Index slipped by 21 points. Stocks advancing included Sagicor Real Estate X Fund, Mayberry Jamaican Equities, Radio Jamaica, Caribbean Flavours and Fragrances, and R.A. Williams Distributors. Decliners included Productive Business Solutions US dollar, Margaritaville Turks US dollar, 138 Student Living Jamaican Variable Preference Shares, General Accident Insurance Company, and IronRock Insurance. Nineteen stocks traded firm.

In foreign exchange trading, banks and cambios sold the US dollar at an average of $158.93. The Canadian dollar averaged $114.15, the pound traded at $213.03, and the euro sold for $182.83.