New hike in fuel prices expected, energy expert says

fuel Gas
A gas station attendant refuels a car at a petrol station in Amman in this undated photo. (File photo: Ameer Khalifeh/Jordan News)
AMMAN — The government is expected to raise fuel prices at the end of this month, according to energy expert Amer Al-Shobaki, a move that is bound to spark discontent, given that fuel prices are dropping globally.اضافة اعلان

At the beginning of November, the government lowered the octane 95 and octane 90 gasoline by 150 fils, and raised the price of kerosene and diesel by 350 fils.

Shobaki said that a rise would be difficult for citizens to bear, especially now that it is winter, and that “over the past seven months the price of diesel and kerosene has been hiked seven times”.

“The government is expected to raise the price of octane 90 by 150 fils per liter, of octane 95 gasoline by 250 fils per liter, and of diesel by 350 fils per liter,” he said.

He also said that the Cabinet is discussing the probability of fixing the price of diesel and kerosene, or of kerosene alone.

The Pricing Committee adjusts prices, adding the special fixed tax and other costs after calculating the global average daily prices of refined derivatives for a full month, on the last day of each month.

Energy expert Hashem Aqel told Jordan News that news about increasing fuel prices circulated last week as oil price started to drop, explaining that “the prices of oil derivatives do not drop the moment oil prices fall”.

He said he could not say whether oil prices will go up, “but I tend to believe that prices will be fixed due to the decreases in the past two weeks”.

“Next week will witness more declines in oil prices, due to the closures in China and the decline in demand,” he added.

According to Aqel, however, by the end of this month, diesel prices will go up due to the differences between the local and international prices.

“The increase in the price of diesel is certain, but with regard to other oil derivatives, I believe that the government is moving maintaining the price,” he said.

It is only possible to determine the price of oil toward the end of this month, “as the government, the Ministry of Energy and Mineral Resources, and the Energy and Minerals Regulatory Commission monitor the prices of oil derivatives until the last day of the month”.

“The decision to put price caps, review the flat tax, and move to electric cars, which save 80 percent of the gasoline bill, is local, not global,” he said.

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