State of the country report calls for pricing oil derivatives quarterly or seasonally

(File photo: Jordan News)
AMMAN — The State of the Country Report 2021 recommended pricing oil derivatives quarterly or seasonally so that local rates would commensurate with global prices.اضافة اعلان

The report also recommended restructuring the electric tariff through a time-bound mechanism that would encourage increased consumption during non-peak morning periods.

The State of the Country Report is published annually by the Economic and Social Council, an advisory body to the Jordanian Government on economic and social issues and policies. Its report covers all sectors of the Jordanian economy.

Last year’s report recommended strengthening the role of the Jordan Atomic Energy Commission by developing the use of third and fourth generation reactors from small compact reactors.

The reactors supply energy in many countries and can be used for electric power generation, water desalination as well as in the agricultural, industrial and medical sectors.

The report urged amending legislation regulating the electricity sector, especially meter reading for households so that consumers would not bear additional costs.

Oil expert Amer Al-Shobaki told Jordan News that the recommendations circumvent the essence of sustainable solutions in the energy sector, especially oil derivatives.

“This reflects negatively on citizens,” he said. He explained if oil prices are high on the international market, they will remain high locally, even if the prices decline globally.

By the same token, the prices would remain low domestically, even if oil prices increase globally, he added.

“This way, citizens are deprived of any declines that they may benefit from,” he maintained.

Energy expert Hashem Al-Akel, said he is against pricing oil derivatives because it brings little benefit to citizens.

He called for revoking government pricing of oil, leaving that to private firms, a move which he said would ultimately create competition and attract more clientele.

Economic analyst Wajdi Al-Makhamreh said tax revenue levied from oil derivatives is an added burden on the pockets of Jordanians. The revenue brings the treasury JD1.2 billion annually.

Makhamreh noted that the tariff in Jordan is one of the highest in the Middle East, and this constitutes a great burden on citizens, especially low-income Jordanians, who are barely able to make ends meet in view of the rise in foodstuff prices.

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