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EMRC studying setting price floors, ceilings for fuel prices to encourage competition — source

1. Gas Prices
An official source at the Energy and Minerals Regulatory Commission (EMRC) revealed a proposed study, which would allow the government to set a price floor and ceiling for fuel. (Photo: Jordan News)
AMMAN — An official source at the Energy and Minerals Regulatory Commission (EMRC)revealed a proposed study, based on the recommendation of the minister of Energy and Mineral Resources, Saleh Kharabsheh, which would allow the government to set a price floor and ceiling for fuel and determine a specified period to working within the chosen ranges.اضافة اعلان

According to Ammon News, the source explained that the goal of setting a price floor and ceiling is to enhance competitiveness among companies that market and distribute fuel.

The source explained that according to the proposal, competitiveness would remain amongst marketing agencies in terms of the services they provide to the consumer, and the source also ensured that the recommended controls would maintain this competitiveness.

He also shared that after opening the application window for companies to work in the marketing and distribution sector for fuel last September, no marketing company applied for a license to practice the import, export, transport, manufacturing, storage, loading, unloading, or distribution of fuel derivatives.

The source also confirmed that the application window is still open, noting that there are currently only three marketing companies in the local fuel market. However, these companies held an exclusive 10-year agreement, which has since expired, which is why the application was put forward.

Hussein Labboun, the chief commissioner of the EMRC, said that the announcement comes in accordance with the authority legally granted to the EMRC, stressing that this step aims to enhance competitiveness within the sector to improve the service provided to citizens.

Regarding the requirements for participating in the fuel marketing sector, Labboun shared that the minimum for those interested in investing, whether domestic or foreign, is that they have at least five years of experience in managing and operating final fuel derivative facilities.

He also added that the interested parties must have experience managing and operating at least 30 gas stations worldwide or at least 15 gas stations in Jordan, provide proof of financial funds and technical experience, and have at least JD30 million in capital.

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