Raising fuel prices will impact consumers negatively, experts warn

4. Fuel Prices
An undated photo of a fuel pump in Amman. (File photo: Ameer Khalifeh/JNews)

AMMAN — Experts have warned that the government’s intention to raise local fuel prices next month, to reflect global energy increases in the past two months, would cause a noticeable hike in prices that consumers and the recovering economy cannot afford, according to Al-Ghad News. اضافة اعلان

They indicated that inflationary factors will have negative impacts that will limit consumption, which will harm the economy. These remarks were made in reaction to Prime Minister Bisher Al-Khasawneh’s statements on Wednesday, when he said that the government will resort to setting the price of oil derivatives in the local market in accordance to their prices in the global market.

The government has been fixing the price of oil derivatives since November 2021, except for making a slight increase on gasoline prices in December. Khasawneh said that fixing the prices had cost the Treasury JD162 million.

Former minister of public sector development Maher Madadha said if the government is forced to accommodate local fuel prices as per global prices, then there would be a major inflation impact on consumers that would not only include fuel prices, but will affect many goods and services.

Madadha indicated that the national economy and consumers will be negatively affected. He added that people’s purchasing power will decline significantly as a result of a hike in inflation rate, and that will affect government revenues as well.

Meanwhile, economist and specialist in oil and energy affairs Amer Shobaki predicted that oil derivatives’ prices to increase by JD0.05 per liter in May, according to AmmanNet.

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