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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