Petrojam has received a loan of $3.3 billion from the government for cash-flow assistance.

This, following a period of heavy losses tied to volatility in the global market and Petrojam’s absorption of as much as $21 of the average $59-per-litre increase on transport fuels between March and May.

The chairman of the State-owned oil refinery is Metry Seaga.

Seaga says absorbing the increases has cost the refinery $3.6 billion over the three-month period.

In response to the losses, Petrojam has revised its tiered pricing structure. Effective Thursday, June 11, it increased the cap on diesel fuel from $4.50 to $12.50. It applies to both automotive diesel oil and ultra-low-sulphur diesel.

According to Petrojam, the adjustment will bring its ex-refinery prices into closer alignment with movements in the benchmark US Gulf Coast reference and would apply whether prices were rising or falling.

Seaga says Petrojam tried its best to balance the demands of the refinery and the cost to consumers.

Metry Seaga, chairman of Petrojam. He was speaking on Nationwide This Morning on Friday.