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AMMAN — The decrease in prices of oil derivatives on the international market in the first 20 days of December could lead to lowering local fuel prices by 2 to 8 per cent, a government source said Tuesday.
It is “impossible” to accurately identify the rate of increase or decrease until 30 days ahead of the announcement of the new prices, the source told the Jordan News Agency, Petra, on condition of anonymity.
The price of liquefied gas has increased since the beginning of December by 10.9 per cent, compared with the November price, which suggests that the actual cost of gas cylinders would exceed JD8 in January, the source added.
But he added that earlier this month, the Lower House and the government reached an agreement to keep the price of gas cylinders at JD7 until next March.
A government pricing committee meets monthly to adjust fuel prices in a manner that corresponds to changes in oil prices on the international market.
The Lower House Energy Committee on Monday asked the government to come up with a new pricing mechanism for fuel products, accusing it of overcharging consumers.
Head of the committee, MP Raed Khalaileh, told The Jordan Times that the government adds around $43 to the cost of each imported oil barrel before it starts calculating the final price for end users.
For example, he explained, if the price of oil globally is $40 a barrel, the government would add $43 and make it $83 a barrel before adding other charges such as costs of maritime shipment, insurance and fuel waste.
But Energy Minister Ibrahim Saif stressed that there are no “unannounced” charges, insisting that the pricing mechanism is transparent and has proven flexible, as shown by the frequent drops in the local prices of fuel.
The government says oil derivatives in the domestic market are subject to additional costs set by international markets for the product to reach Aqaba, Jordan’s sole sea port.