News Column

Gov't decides slight rises to fuel prices despite soaring oil prices

July 1, 2014

by Omar Obeidat | Jun 30, 2014 | 23:46

AMMAN The government on Monday raised the prices of main oil derivatives by nearly 1 per cent, with an official saying the increase was meant to be slight because of Ramadan.

According to the decision taken by the pricing committee, one litre of unleaded 90-octane gasoline will be sold at JD0.855, up from JD0.845, while one litre of 95-octane will cost JD1.040, compared with JD1.030. The decision, announced by Minister of Industry, Trade and Supply Hatem Halawani, is effective July 1 until the end of the month.

Prices of both diesel and kerosene were up to JD0.675 per litre on the new price list, from JD0.670, the ministry said in a statement e-mailed to The Jordan Times.

The price of cooking gas, which is also used by households for heating purposes, remains unchanged at JD10 per cylinder.

A government official commented on the new update by saying the increase in fuel prices would have been higher if authorities reflected the real global price of Brent Crude on the domestic market.

Prices of Brent during the month averaged mostly at $114 per barrel, while in May it ranged around $108, the official said, adding the government decided to raise prices slightly because of the fasting month of Ramadan.

"The government thought the increase is fair as it won't affect other commodity prices and it won't add heavy burdens on consumers," said the official, who preferred to remain unnamed.

Last week, food merchants called on the government to keep fuel prices unchanged during Ramadan as they said that any increase on fuel prices would put additional costs on suppliers and would automatically be reflected on end consumers.

Fuel prices, except for cooking gas, are no longer subsidised by the government, which lifted oil subsidies in November 2012.

A government pricing committee meets monthly to adjust prices in a manner that corresponds to changes on the international market.

The committee comprising representatives of the ministries of energy and finance, and the Jordan Petroleum Refinery Company calculates the updates based on average international prices during the preceding 30 days, and other costs such as freight and handling, and announces a new price list every month.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Jordan Times, The

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters