Jordan paid 43% more for oil in 2021

(Photo: Jordan News)
AMMAN — The Kingdom’s bill for crude oil and its derivatives increased by 43 percent over the past year. The foreign trade data issued by the Department of Statistics on Monday shows that the value of the oil bill amounted to about JD1.836 billion in 2021, compared to JD1.283 paid in 2020.اضافة اعلان

Crude oil accounted for the largest share of the Kingdom’s total imports of oil derivatives, reaching about JD747 million, followed by gasoline, JD452 million, diesel, JD390 million, liquefied gas, JD208 million, lubricating oils, JD27 million, and kerosene, about JD11 million.

Economic expert Wajdi Makhamreh said that during the pandemic, the volume of oil consumption decreased, but the return of economic activity and the beginning of winter increased demand for oil derivatives.

Makhamreh added that in light of the Russian-Ukrainian crisis, the government fixed the prices of oil derivatives for two months, which is a political decision, and urged the government to reduce the tax on oil derivatives because it constitutes a burden on consumers and industries.

Oil expert Mubarak Al-Tahrawi said that Jordan imports 100,000 to 110,000 barrels of crude oil per day and 180,000 barrels of oil equivalent (energy in all its forms), and that Jordan is one of the countries affected by the rise in the global price of oil.
... the return of economic activity and the beginning of winter increased demand for oil derivatives.

Tahrawi added that prices may witness a significant increase if the Russian-Ukrainian crisis escalates. He pointed out that “the rise in Jordan’s oil bill last year by 43 percent is due to the rise in prices in general and oil in particular”.

Energy expert Hashem Aqel said that the main reason for the global rise in oil prices is the continuous rise in prices, the return of economic activity, the decline of the virus, and lack of supply.

“OPEC has tightened control over supply and demand and set quotas for all its members, and all producers adhered to these quotas, which led to a sharp reduction in the quantity supplied, and thus prices increased,” he said.

“OPEC is no longer able to produce the quotas prescribed for its members due to weak investments. Perhaps the main factor for raising prices are the geopolitical tensions that occurred in the Gulf and then in Eastern Europe, and we are witnessing the results of this tension these days in the sharp rise in oil prices,” he added.

Ministry of Energy and Mineral ResourcesSpokesperson Mashhour Abu Eida said that the Petroleum Derivatives Pricing Committee at the ministry held a meeting on Monday to determine the oil and oil derivatives prices for March.

Following government directives, and for the second consecutive month, the committee fixed the selling price of octane 90 gasoline at JD0.85 per liter, of octane 95 gasoline at JD1.085 per liter, of diesel at JD0.615 per liter, and of kerosene at JD0.615 per liter; it also maintained the JD7 price per gas cylinder.

It should be noted that the average price of Brent crude rose to $97.9 per barrel in the month of February, compared to $86.9 per barrel recorded in January.

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