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Gov’t hikes fuel prices by 3-8%

Increase to gas prices includes ‘support for Treasury’

By JT - Feb 01,2017 - Last updated at Feb 02,2017

Vehicles wait in queue to refuel at a gas station in Amman on Tuesday (Photo by Amjad Ghsoun)

AMMAN — The government on Tuesday decided to raise the prices of gasoline, kerosene and diesel by 3 to 8 per cent, and maintain the price of gas cylinders unchanged for February.

The government’s decision, which goes into effect today, was taken in accordance with the recommendations of the fuel pricing committee, which convened on Tuesday, the Jordan News Agency, Petra, reported.

Under the decision, kerosene and diesel will be sold at JD0.480 per litre, up from JD0.465, marking a 3.22 per cent increase.

One litre of unleaded 90-octane gasoline will be sold at JD0.665, up from JD0.62, marking a 7.3 per cent increase, while a litre of unleaded 95-octane gasoline will sell for JD0.88, up from JD0.81, recording an increase of 8.64 per cent.

The hikes to gasoline prices include a 30 fils increase to support the Treasury under “economic correction measures” recently taken by the government, Petra reported, adding that no such increase was added to the prices of kerosene and diesel.

A government committee meets monthly to adjust fuel prices to correspond with changes in oil prices on the international market.

The committee noted that the price of gas cylinders will remain unchanged at JD7 despite their actual increase to JD8.5.

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.

The committee said that it referred to international oil prices, which showed that the cost of a barrel of crude Brent oil went up from $53.5 in December to $54.6 in January, Petra reported, adding that since the average of the crude Brent oil barrel did not exceed $55, the government kept the price of a kilowatt hour of electricity as is.

All derivatives are subject to a JD0.006 stamp fee, in addition to other fixed fees related to transport, storage and insurance costs.

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