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Gov't raises fuel prices by 3.5 to 10.9%

By JT - Jun 01,2016 - Last updated at Jun 02,2016

The prices of unleaded 90-octane and 95-octane gasoline will see a 4.7 and 3.5 per cent increase in June (Photo by Amjad Ghsoun)

AMMAN — The government on Tuesday decided to increase the prices of gasoline, kerosene and diesel by 3.5 to 10.9 per cent for June and to maintain the price of gas cylinders unchanged at JD7, the Jordan News Agency, Petra, reported.

The government’s decision, effective as of Wednesday, was taken in accordance with the recommendations of the fuel pricing committee, which convened a day before.

Under the decision, kerosene and diesel will be sold at JD0.405 per litre, up from JD0.365 per litre, an increase of around 10.9 per cent.

The prices of unleaded 90-octane and 95-octane gasoline will see a 4.7 and 3.5 per cent increase under the decision respectively.
One litre of unleaded 90-octane gasoline will be sold at JD0.560 instead of JD0.535, while a litre of unleaded 95-octane gasoline will be sold at JD0.730, up from JD0.705.

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

The committee noted that the price of gas cylinders will remain unchanged at JD7, despite a 7.3 increase in the international price of liquefied gas.

The committee said that the average international prices of crude oil and its derivatives witnessed a "remarkable increase", with the average price of Brent crude going up by 13 per cent from $41.36 per barrel in April to $46.75 per barrel in May.

Despite the 13 per cent rise, gasoline prices went up by a lesser amount thanks to the surplus of this item in the international market, Petra quoted the committee as saying.

Prices of oil derivatives on the local market are calculated based on international prices, with the addition of other costs such as shipment, handling and taxes.

Overall taxes on oil derivatives are as follows: 22 per cent on 90-octane and 40 per cent on 95-octane, while the tax is 6 per cent for all other fuel products, except for heavy oil.

 

All derivatives are subject to a JD0.006 stamp fee.

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