AMMAN— A decline in
fuel prices globally drew
speculation that Jordan’s government will reduce the price of fuel derivatives
locally for the first time this year, most likely at the beginning of
September.
اضافة اعلان
The speculation
is not based on any credible information, but it takes into consideration
general factors, such as a dwindling demand caused by a global recession, a
rise in production by
OPEC and a slowing Chinese economy.
Energy expert
Amer Al-Shobaki forecasted that the price of gasoline, of both grades sold
locally, will fall by at least 4 percent in the next two weeks, and before the
next price list for September is announced.
“With the fall
of global gasoline prices, I expect that the price of octane 90 gasoline
locally will be reduced by not less than 40 fils per liter, and octane 95
gasoline will be reduced by no less than 70 fils per liter,” Shabaki told Jordan News.
Jordan increased
the price of both types of gasoline five times since the beginning of this
year, to unprecedented records in the history of gasoline prices in Jordan,
with a liter of octane 90 gasoline reaching 990 fils and of octane 95 reaching
JD1.3 per liter.
But oil prices
now are lower than they were when Russia waged a war on
Ukraine last February,
having dropped more than 30 percent in barely two months, according to the New
York Times.
On Monday, news
of a slowing
Chinese economy and a cut in Chinese interest rates sent prices
down further, to less than $90 a barrel for the American benchmark, according
to the newspaper.
In the US,
gasoline prices have fallen every day over the last nine weeks, to an average
of less than $4 nationwide. Prices of jet fuel and diesel are easing as well.
That should translate eventually to lower prices for things as diverse as food
and airline tickets.
But the
newspaper warned that it was too early to celebrate. “Energy prices can spike
as easily as they can plummet, unexpectedly and suddenly,” it pointed out.
Shobaki
speculated that the global reduction in gasoline prices was caused by several
factors, namely a declining demand resulting from global economic recession,
lockdowns in China, a rise in US crude stocks, and a rise in oil production in
the OPEC Plus group.
Other reasons,
he added, is hopes for the revival of an agreement on a nuclear deal with Iran,
“which could plunge oil prices to $85, if completed”.
Another energy
expert, Hashem Akel, said it was premature to predict a decrease in fuel prices
locally. He said there were two weeks till the end of the month, and any
political event might affect fuel prices.
“Since the
beginning of August the barrel of Brent crude oil started at $100 a barrel,
then decreased to $93, then climbed to $97, and now stands around $98,” Akel
told Jordan News.
“Therefore, we
can’t predict an increase or decrease before we get closer to the end of the
month,” he explained.
Mashhor Abu Eid,
a spokesperson for the
Ministry of Energy and Mineral Resources, said that the
Petroleum Derivatives Pricing Committee determines the fuel prices at the end
of each month.
He said the committee’s
decision is based on a review of international prices and according to the
pricing formula in force since February 5, 2008 in line with directives by the
Council of Ministers. He did not discuss speculations on a possible decrease in
fuel prices.
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