Oil derivative prices expected to rise ‘significantly’ next month

3. Oil Prices
The international prices of oil derivatives are expected to rise with the beginning of winter season, potentially setting Jordan up for increased fuel prices. (Photo: Jordan News)
AMMAN — The prices of oil derivatives are expected to rise with the beginning of winter season. According to Amer Al-Shobaki, a fossil fuel energy expert, there will be a “significant” increase in fuel prices in November, by as much as 5–11 percent, from JD1 to JD1.35 per tank, or from JD0.05–JD0.065 per liter of diesel and gasolineاضافة اعلان

Shobaki added, in an interview with Jordan News, that “this increase is the result of a significant global increase in oil prices, which increased by 11 percent in October, compared to last month.”

The energy expert said that the economic experts, particularly at the Ministry of Energy “should work quickly to impose price ceilings on petroleum products,” to protect Jordanians and take “the necessary precautions and reexamine taxes imposed on gasoline and diesel.”

Shobaki pointed out that Jordanians spend “more than 40 percent of (their) income” on energy — an average of JD350 per month.

However, a source at the Ministry of Energy, who spoke on condition of anonymity, told Jordan News that “it is (too) early to talk about an increase on oil derivatives prices in the winter season.”

The source added that “there is an ad hoc committee which is specialized in setting the prices each month. We cannot assume that the prices are going to rise in winter; the committee sets the prices according to the global prices, and some scientific studies.”

It is worth mentioning that at the beginning of October, the government raised the oil derivatives prices for the seventh time this year, raising the price of 95-octane gasoline to JD1.06 per liter, the price of 90-octane gasoline to JD0.825 per liter, and the price of diesel and kerosene to JD0.615 per liter.

It is unfortunate timing for Prime Minister Bisher Khasawneh’s government, Shobaki said, given the economic downturn globally as a result of the COVID-19 pandemic. However, he concluded, it is up to the government to present out-of-the-box solutions to overcome the crisis.

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