Fuel prices expected to increase in February, experts say

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AMMAN­— The government is expected to raise the prices of oil derivatives in February by 3-8 percent, according to energy expert Amer Shoubaki. اضافة اعلان

The prices of a liter of gasoline 90 and gasoline 95 are expected to rise from 30 to 40 fils, which will mean a 600 to 800 fils rise in the price of a 20-liter tank, Shoubaki told Jordan News.

The price of a liter of diesel may increase by five fils, equivalent to JD1 for 20 liters, while the price of kerosene is usually fixed throughout the winter season, he added.

Globally, the price of oil has risen since the beginning of this year by 10 percent, with an average price of $84 per barrel for Brent in January, and an average of $74 per barrel last December, Shoubaki said.

He added that the reasons for this rise include growing demand for oil and the decline in risks of the Omicron mutant to the global economy, accompanied by a drop in supply by producers. Added to this are suppliers’ fears over the escalation of tensions in Ukraine and the Gulf, and the faltering of the Vienna negotiations on the Iranian nuclear file.

The rise in the prices of oil derivatives globally should not be a reason for the government to impose an additional hike, Shoubaki said. “Instead, the government should fix prices at the current ceilings, in light of the fact that it charges a fixed tax, which amounts to 44 percent of the price of gasoline 90 and 53 percent of the price of gasoline 95, and more than a quarter of the price of kerosene and diesel, at a rate of 27 percent.”

According to Shoubaki, the government increased the prices of oil derivatives nine times over the past 13 months, raising the price of a liter of gasoline 90 to 900 fils per liter and for gasoline 95 to over JD1 per liter. As for diesel and kerosene, the price has jumped to over 600 fils per liter. 

“These are historical price levels that require setting price ceilings and reducing taxes on oil derivatives, which in turn will contribute to reducing the cost of the energy bill,” he said.

Hashem Aqel, an energy expert, told Jordan News that the price of gasoline 90 is expected to increase by four percent and of gasoline 95 by 3.2 percent.

Regarding diesel, which is used mainly as heating fuel, he said, “if the December price, of 45 fils, were taken as reference, the increase would be seven percent, but if the October price, of 82 fils, were to be the reference, the increase would be 12 percent higher”.

“These increases are very stressful for citizens and must be reconsidered, especially since the economic conditions of citizens do not allow for more steep hikes,” Aqel said.

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