Fuel sector challenges prompt second study

Lower House Energy and Mineral Resources Committee Fuel sector challenges prompt second study
Discussing fuel sector problems at a key meeting of the Lower House Energy and Mineral Resources Committee. (Photo: Jordan News Agency, Petra)
AMMAN — The Lower House Energy and Mineral Resources Committee, chaired by MP Talal Ensour, is scheduled to submit a recommendation to the Ministry of Energy and Mineral Resources. The recommendation calls for conducting a second study to assess the impact of costs on petroleum stations' commission ratio and to address the challenges faced by the fuel sector.اضافة اعلان

During a committee meeting held on Sunday, Ensour highlighted that a four-month period has been allocated to deliver the study's outcomes, enabling appropriate actions to be taken based on the findings, the Jordan News Agency, Petra reported.

Nahar Seidat, Head of the Syndicate of Fuel (SOF), expressed concerns about the significant losses suffered by the fuel sector during and after the Covid-19 pandemic. He attributed the decline in sales to citizens' inclination towards owning hybrid and electric-powered vehicles.

Seidat emphasized that Jordan's petroleum stations have experienced an annual decline in sales of approximately JD400 million, resulting in a detrimental impact on the sector. He warned that some fuel stations in rural areas might face difficulties in securing kerosene supplies in the upcoming periods.

Urge to increase current commissionThe high prices of oil derivatives and the decline in citizens' purchasing power were cited as reasons for the sector's losses. Seidat stressed the urgent need to increase the current commission granted to petroleum stations. This adjustment aims to ensure a minimum return on investment, allowing the sector to continue operating in the market without incurring losses.

According to a study conducted by Talal Abu-Ghazaleh &Co. Consulting (TAG-Consult), recommendations include raising the current commission rate by more than 15 fils to reach 33 fils per liter. These measures are proposed to address the challenges faced by the fuel sector and improve its financial sustainability.

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