Energy expert says oil price to drop as citizens fume

1 Oil prices
Cars line up at a gas station in Amman, in this undated photo. (Photo: JNews)
AMMAN — An energy expert expects that the price of oil sold in local markets will decrease by 1.5 to 3 percent at the end of the current month, which would work out to about 1.5 to 2 piasters for each liter of 90-grade gasoline, 95-grade gasoline, diesel, and kerosene.اضافة اعلان

“This drop will be the first ... after six hikes in the prices of these commodities in the current year 2021,” said Amer Al-Shoubaki, in remarks to Jordan News.
Shoubaki added that the “world’s oil prices have witnessed the largest weekly decline in nine months and since the end of last year.

This is because many countries around the world have responded to the high rate of infection due to the mutated Delta variant by adding travel restrictions to stop its spread.”

“China has imposed stricter port controls causing congestion, countries including Australia, Japan, and Thailand have increased travel restrictions and global demand for jet fuel has fallen after improving for most of the summer,” he said.

“Brent crude fell 8 percent for the week, to settle at $65.18 a barrel, its lowest level since April. West Texas crude fell to $62.32 a barrel on Friday, losing more than 9 percent for the week.”

“Jordan can benefit from the drop in oil prices through filling up its strategic reserves, which would help reduce the oil bill over months to come,” Shoubaki said.

“In general, the collapse of oil rates also contribute in maintaining the dollar reserves at the Central Bank of Jordan and enhancing the purchasing power of Jordanians.” He said.

The recent rise in oil prices has put a strain on the economy and normal people, with the majority of citizens Jordan News spoke with saying the recent oil hikes have hit their wallets at a time when the pandemic’s effects are still being felt.

The government has raised the prices of oil six times this year, the last of which was at the beginning of August, where the price for a liter of 90-grade gasoline reached 0.83 piasters, the price for a liter of 95-grade gasoline reached JD1.07, and the price for a liter of diesel and kerosene reached 61.5 piasters.

Ahmad Tawil, a citizen, told Jordan News that "I used to work in a company before the pandemic and I lost my job right after it occurred.”

Tawil added: "We pay for rent, bills, and daily expenses — I cannot bear or manage any other payments any more, our government should find us real solutions."

"I sometimes feel that Jordan is one of the most expensive countries in the world, even more expensive than Dubai for instance, at least there they have a great income that can help them in living.

I think immigration is the best and last decision left for me," he said.

Rami Marwan, another citizen, told Jordan News that "I cannot blame the country for raising oil prices, especially since the raise is global now but I can blame them for not helping us find work, especially since unemployment is increasing more year by year, which is a dangerous signal."

Heba Qunibi, another citizen, told Jordan News that "one third of my salary goes towards gasoline for my car which is not fair.

Here in Jordan you can never save money for the future because even your salary does not last for a month."

Jordanian Alaa Hammad, told Jordan News that he thought the hikes were fair since it is an international issue.

However, a lack of jobs and money is making the hikes especially painful, he said. 

Mahmoud Nasser, a taxi driver, told Jordan News that “we as taxi drivers are suffering to death, our only salary comes from our work as drivers, but now, in light of the pandemic and rising oil prices I can say that we have no income.”

“I pay almost half of my income on gasoline, the government should notice that the increase on prices affects us differently; it may not make a difference for rich people but for people like us it does,” he said. “We need every piaster.”

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