‘6 to 8.5% drop expected in fuel prices’

AMMAN — Fuel prices are expected to drop on August 1, mirroring the decline in prices of Brent crude, the global oil benchmark, an informed source said Thursday.

Despite the tumble in the global oil prices between 7 to 8.25 per cent, the expected reduction in prices is linked to the decline of Brent, whose price stood at $57.7 per barrel, said Gas Stations Owners Association President Fahed Al Fayez.

“To that effect, the prices of oil derivatives in Jordan will most likely be down by no less than 6 to 8.5 per cent as of August,” he told The Jordan Times.

Fayez noted that the prices of gas cylinders will also witness a drop.

Currently, the prices of one litre of unleaded 90-octane and 95-octane gasoline are JD0.655 and JD0.840 respectively.

The 12.5-kilogramme cooking gas cylinder is sold at JD7.75, while the price per litre of diesel and kerosene is JD0.485.

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

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

According to Agence France-Presse, oil prices have tumbled from more than $100 a barrel in June last year as strong production from the United States and the Organisation of the Petroleum Exporting Countries led to supply outpacing demand.

Concerns over the return of Iranian oil to the market following a deal with major powers on its suspected nuclear ambitions have also depressed prices, AFP reported on Wednesday.