Fuel prices expected to rise next month amid global hike, experts say

AMMAN — According to energy experts the government is expected to raise fuel prices between 4 and 10 per cent next month due to the global increase in fuel prices.

During the first three weeks of this month, crude oil prices ranged between $82 and $88 per barrel, compared with $74 and $84 last month.

Hashem Aqel, an energy expert, told The Jordan Times on Saturday that oil derivative prices have witnessed sharp increases as of this month due to increased Brent crude oil prices.

He added that the cost per litre of 90-octane gasoline increased by 35 fils, or 3.8 per cent, while the price of 95-octane gasoline increased by 35 fils, or 3 per cent. 

The diesel cost per litre witnessed an increase of 70 fils, at a rate of 9.7 per cent. The price of kerosene increased by 10 fils, and its price is fixed at 620 fils, he said.

The growth in prices comes as a result of increased oil demand and decreased supply due to Saudi Arabia’s voluntary cut of one million barrels, and its announcement to extend this cut until September, Aqel said, adding that these actions have an immediate effect on the market as confirmed by the current price reaching $87. 

China has recently announced its plan to stimulate the economy and increase its oil imports by urging banks to increase loans and reduce debt risks.

According to statements by OPEC officials, the goal has always been to improve prices and maintain a market balance, Aqel added.

Economist Hossam Ayesh said that  the increase in fuel prices will undoubtedly lead to higher fuel expenses for households, leaving them with less money to spend on other essential items.