Trade sector representatives voice worry over commodity price increases

AMMAN — Trade sector representatives expressed their concerns over the harmful effects of price increases on the sector. 

The fuel price hike is expected to negatively affect both the market and consumers, according to multiple representatives. 

“The prices of goods are determined by so many factors and energy is one of them,” Asad Qawasmi, the clothing, jewellry and footwear sector representative at Jordan Chamber of Commerce (JCC), told The Jordan Times. 

Qawasmi said that while reducing the electricity tariff will not directly affect the commercial sector, it will lead to more liquidity in the hands of consumers.  

“Any price hike will have a ‘dramatic’ negative impact on the commercial sector,” Sharaf Hayajneh, furniture, carpets and stationary sector representative at the JCC told The Jordan Times. 

Hayajneh noted that the fuel price hike will reduce liquidity in the market.

“We demand the government to apply a significant reduction on electricity tariff for the commercial sector,” Hayajneh added.

Meanwhile, Mashhour Eid, spokesperson at the Ministry of Energy and Mineral Resources stated that businesses in the commercial sector who consume less than 2,000 kilowatts per month will see a drop from 175 fils to 152 fils kilowatt/hour, while those with consumption under 2,000 kilowatts will see an unchanged price of 120 fils kilowatt/hour.

“Weak business activity, lack of liquidity in the market, as well as the amount of taxes and fees paid for merchandise are all factors contributing to the final price of goods and products, given the high prices of raw materials and the global surge in container shipping fees,” Hayajneh said. 

Omar Awwad, president of the Restaurants Owners Association, told The Jordan Times that: “Our biggest challenge is the increasing production costs.” He noted that the recent increase in fuel prices will “add to the troubles” the food sector faces. 

Awwad listed some of the items that have “increased dramatically” for restaurants, noting that for instance, a ton of chickpeas used to be sold for only around JD300, but now he pays nearly JD1,200. 

He also said that the price of cooking oil has increased from JD20 for 18 litres to JD33, as well as the Social Security Corporation subscription, which was increased from JD14 per employee per month to JD33.