Fuel prices could drop in Jordan

[Jordan's] Head of the Lower House Energy and Mineral Resources Committee Mohammad Dawaimeh on Tuesday said that the government will lower fuel prices before the weekend in response to pressure from MPs. “I am 100 per cent sure the government will bring down the prices of oil derivatives,” Dawaimeh told The Jordan Times over the phone, expecting authorities to release a statement on Wednesday. Lowering the fuel prices is the only option the government has, because its recent decision to increase them was “wrong” he said, adding that the initial decision had not taken the concerns of Jordanian people into consideration. Dawaimeh argued that the price of oil derivatives should not have been increased due to the global crude oil market remaining stable over the past month. Earlier this week, a memorandum was submitted by 62 deputies urging the government to reconsider its initial decision to raise fuel prices. Dawaimeh noted that fuel prices should revert back to last month’s rates by the weekend. Last week the government increased prices of four fuel products, a decision that triggered criticism among MPs and activists. Under the latest pricing update, one litre of unleaded 90-octane gas is now sold at JD0.835 ($1.20), up from JD0.800 ($1.10), while a litre of 95-octane gas is sold at JD1.030 ($1.45), up from JD0.990 ($1.40). Prices of both diesel and kerosene went up to JD0.710 ($0.98) from JD0.685 ($0.67). The price of cooking gas remained unchanged at JD10 ($14) per cylinder.    Fuel prices are updated on a monthly basis based on recommendations by a pricing committee that reviews the changes to crude oil prices on the international market. Dawaimeh mentioned to The Jordan Times that the panel is organising a review of the current pricing mechanism, and indicated that this was discussed with Minister of Energy and Mineral Resources Alaa Batayneh. Batayneh said in the meeting that the pricing mechanism is fair and gaining more public confidence. “We [MPs] are here to defend the people who elected us and not to justify government decisions,” he said, adding that lawmakers have asked the government not to raise fuel prices without consulting the House. “The pockets of Jordanians should no longer remain the main financier of the Treasury,” Dawaimeh stressed. Albawaba Business