Fuel price disproportionate to citizens income

1. Picture
A car fills up gasoline. (File Photo: Ameer Khalifeh/Jordan News)
AMMAN — The Petroleum Derivatives Pricing Committee at the Ministry of Energy and Mineral Resources on August 1 raised the prices of gasoline, diesel, and gas derivatives for the fifth time this year, drawing consumer dissatisfaction.اضافة اعلان

Mohammad Ismail, a private sector employee who uses his car for transportation, said “the high prices of oil derivatives have decimated us.”

“We are forced to abandon our cars and use public transportation because the high prices are unacceptable and disproportionate to the income of the Jordanian citizens,” he told Jordan News.

Oil expert Amer Al-Shobaki said “the latest hike is not justified”.

“The government said it intended to increase fuel prices four times; this hike is the fifth from the beginning of the year, and according to its statements, there will be two more hikes,” he pointed out.

According to Shobaki, “the price of our gasoline is higher than international prices, and the taxes imposed on it are very high”.

“The local market cannot bear these prices, which will contribute to raising the prices of goods and services, as well,” he told Jordan News.

Raising the prices of oil derivatives like this causes an increase in inflation rates, which the governments has been trying to reduce by raising interest rates, and this puts additional pressure on the economy and on the Jordanian citizen, Shobaki added.

He said the International Monetary Fund had asked the Jordanian government to reduce the tax levied on fuel derivatives, and completely lift subsidies on crude oil products in line with the provisions of an economic reform program.

The government acquiesced to these requests, unlike other countries such as Tunisia and Egypt, Shobaki added.

The latest price rise is as follows: by JD0.035 to the 90-octane gasoline, making the price of a liter JD0.990, by JD0.060 the 95-octane gasoline, bringing the price of a liter to JD1.3, and by JD0.035 the price of diesel and kerosene, pushing the price of a liter up to JD0.755.

The price of a gas cylinder, however, remained unchanged, selling at JD7.

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