AMMAN — Economist Hussam Ayesh called on
the government to review the mechanism for
calculating fuel prices, given the
economic challenges of global slowdown and rising prices. This is to mitigate
the negative impact on citizens. He noted that the
government's decision to
adopt the Arabian Gulf markets in the "Platts" bulletin for fuel
pricing has not reflected on costs as was expected.
اضافة اعلان
The continuous price hikes will lead to a
decline in growth rates, which are still ranging between 2–2.2 percent, and consequently
inflation rates will rise, affecting the purchasing power of citizens, Ayesh
said in an interview with Jo24.
He questioned the funds that successive
governments announced to counter the
rise in fuel prices and their impact on
supporting citizens and alleviating the effects of price increases on them.
Decreased
production and employment
Ayesh explained that
raising interest rates by the central bank and increasing fuel prices will increase costs on different
sectors, leading to a
decrease in production. Prolonged increases will likely
result in workforce reductions.
He said that raising fuel prices will also
impact the government's ability to
secure revenues due to the decline in
citizens' purchasing power. He clarified that the recent revenue increase is
due to tax evasion rather than economic improvement.
Ayesh noted that the government resorts to
raising fees on official transactions without announcing it, in order to
enhance revenue. Citizens often discover the existence of fees or their increase
without prior notice when conducting transactions.
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