AMMAN —
Minister of State for Media Affairs Faisal Al-Shboul reiterated Monday that
there remain four more hikes to the prices of oil derivatives in the next few
months.
اضافة اعلان
The statement
echoes the comments of
Interior Minister Mazen Al-Faraya, who broke the news on
the planned hikes earlier in the month, saying that increase was dictated by
rising fuel prices internationally.
Energy expert
Hashem Al-Aqel said that the government will not be affected by the rise in oil
prices, since the tax it levies on the sale of oil derivatives will remain
unchanged.
“It is the people
who will be affected,” he emphasized.
“People are going
through economic hardships and the rise in consumer goods and oil derivatives
require the adoption of a culture of rationalization of consumption,” he
suggested.
He also
recommended that “people are better off using electric cars”, as a way to ease
the burden of increased fuel prices.
Oil expert
Amer Al-Shobaki said that the impact of the hikes on consumers, and the Jordanian
economy at large, is “huge”. He explained that there are no viable alternatives
for citizens, such as a reliable public transportation system.
Other reasons, he
said, include the absence of salary hikes, while prices continue to climb. He
said that the recent increase in commodity prices, which is officially set at
3.6 percent, does not reflect the real and significant rise in the price of
consumer goods.
He said he
believed that oil prices will rise with an envisaged increase in demand,
coupled with the impending European embargo on Russian oil globally.
Shobaki said that
the planned four hikes “reflect the government’s insistence on raising gasoline
prices and the absence of alternatives, or solutions, because the tax levied
from oil derivatives is considered as revenue to the state budget.”
“The situation is
very worrying”, he warned. “It is expected that we will exceed four and may
reach six hikes, while the actual increases may be higher than the rates
announced by the government”.
Shobaki
maintained that the government “does not have a plan to support low-income
people, especially as we approach winter, and this is a call to restore the
subsidy that was in 2014”, which made oil prices affordable to people.
Former president
of the
Syndicate of Fuel Fahed Al-Fayez told
Jordan News that when the
government decided to raise the prices of oil derivatives, the purpose was for
the government to recoup the JD160165 million in lost revenues. “The plan was
to restore these amounts by gradually raising the price, which began in April,”
he explained.
He pointed out
that when the government announced “losses” from partly subsidizing oil prices,
“it wasn’t actual losses, but rather a loss of government revenues”. He
maintained that 15 to 18 percent of budget revenues, or JD1.25 million, come
from oil derivatives.
Fayez said the
increases are “simply a burden on citizens, who will not be able to bear this
complicated economic situation, especially in the current circumstances, as the
government treats the citizens as a revenue fund.”
“The solution is
to look for other sources because these raises will stop many activities and
affect the pocketbook of the citizens, especially as we approach winter,” he
said. He questioned how the local economy would be affected if the
Russian war in Ukraine lasted longer than predicted.
Economist
Mazen Irsheid said that gasoline is a basic substance for the consumers and the
impact of the hikes is “significant”, even though some people have opted to
buying electric and hybrid vehicles.
Last summer, the
government slapped a 10 percent raise in customs on electric cars for the third
consecutive year, “contradicting its declared stances that it supports
renewable energy and seeks to reduce the burden on people”.
He said Jordan
imports 93 percent of its energy needs annually, which “requires government
planning, not depending on citizens”.
The price of gasoline 90,
95, and 98 octane per liter is considered the highest in the Arab world, and
with the planned increases, it “will remain as such”.
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