Deputy says increase in gas prices justified

AMMAN — The Lower House Energy Committee on Wednesday defended a government decision to increase the prices of gasoline. 

Committee Chairman Jamal Gammoh said the government increased prices of one litre of unleaded 90-octane gasoline in April to JD0.61, up from JD0.585 last month, while one litre of 95-octane now costs JD0.775 compared with JD0.74 in March.

“The government increased prices of gasoline by 4 per cent while globally gas prices rose by about 7 per cent,” Gammoh said over the phone.

“Last month, demand on gasoline rose sharply globally which led to this increase. Our increase was lower than the global average,” the MP said. 

Gammoh added that the price of diesel and kerosene globally dropped by less than 1 per cent, which made it more convenient to maintain their prices unchanged. 

One litre of diesel or kerosene costs JD0.455.

Gammoh made the remarks after the Gas Station Owners Association called on the government to rescind the decision to increase gas prices.

The government lifted oil subsidies in November 2012.

A government pricing committee now meets monthly to adjust prices in a manner that corresponds to changes on the international market.

The committee comprises representatives from the ministries of energy and finance, and the Jordan Petroleum Refinery Company. 

It updates prices based on average international oil prices during the preceding 30 days, and other costs such as freight and handling.