Jordan’s Fuel Pricing Committee on Wednesday decided to raise the prices of both grades of gasoline and diesel by 50 fils per liter each for October, while keeping kerosene and the price of a 12.5-kilogram household liquefied petroleum gas cylinder unchanged at JOD 7.
The new prices will take effect on October 1.
The committee reviewed fuel prices during September and compared them with August levels, noting a significant rise in crude oil and petroleum product prices amid continued geopolitical tensions in the region and their impact on global markets.
Despite the global increase, the committee said the government sought to limit its impact on citizens and economic sectors by making only a partial adjustment to local fuel prices for October. The new prices are:
* 90-octane gasoline: 1,050 fils per liter
* 95-octane gasoline: 1,360 fils per liter
* Diesel: 900 fils per liter
* Kerosene: 550 fils per liter
The price of a 12.5-kilogram household LPG cylinder will remain at JOD 7. The government will also continue supporting LPG allocated to the industrial sector, with subsidies reaching JOD 1.8 million for October.
The committee said local fuel pricing is based on the monthly average of international prices during the 30 days preceding the pricing date. However, under the government’s gradual pricing policy adopted since the beginning of the crisis, domestic prices still do not fully reflect international costs, even after taxes are taken into account.
The actual costs of petroleum products used in the October pricing were:
* Diesel: 1,077.32 fils per liter, compared with a retail price of 900 fils.
* Kerosene: 1,043.79 fils per liter, compared with a retail price of 550 fils.
* 90-octane gasoline: 1,111.68 fils per liter, compared with a retail price of 1,050 fils.
* 95-octane gasoline: 1,360.08 fils per liter, compared with a retail price of 1,360 fils.
The committee said the total subsidies and price differences borne by the government since the beginning of the crisis through the end of September amounted to around JOD 255 million, due to higher global petroleum costs and the decision not to fully reflect actual costs in monthly fuel prices.
It said the gradual adjustment for October reflects the government’s efforts to limit fluctuations in domestic fuel prices and provide greater stability for citizens and economic sectors amid continued uncertainty in global markets resulting from geopolitical developments.
The committee said it would continue to assess developments in global energy markets and their impact on domestic costs on a monthly basis, taking into account price movements and geopolitical conditions, in order to make timely decisions while balancing consumer protection, support for economic sectors and economic and fiscal stability.
