Slight rise in fuel prices expected

AMMAN – Prices of oil derivatives in the domestic market are expected to increase by 3 to 4 per cent at the end of this month, according to an industry source.

The source, who requested to remain unnamed, said the expected increase in prices of main fuel products would be a reflection of the slight recovery in prices of Brent crude, the global oil benchmark. 

On Sunday, Brent crude was traded at $48.6 a barrel, according to news agencies.

The government updates fuel prices on a monthly basis 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.

In September, the government lowered the prices of fuel and oil derivatives by 9.6 to 11 per cent, due to the decline in the prices of Brent crude oil in the month before. 

“The price of the Brent crude oil increased recently by more than $2.00 a barrel and this will be reflected on fuel prices domestically,” the source told The Jordan Times Sunday.

Currently, one litre of unleaded 90-octane gasoline is sold at JD0.56, while a litre of unleaded 95-octane gasoline is priced at JD0.725.

The price of one litre of diesel and kerosene is sold at JD0.405.
The price of the 12-kilogramme gas cylinder, used for cooking and in winter for heating purposes, went down to JD7.25 from JD7.50, under the new pricing list, at a 3.3 per cent drop.

But Jamal Gammoh, the head of the Lower House’s Energy and Mineral Resources Committee, expected prices of gasoline to go up 1 per cent to 2 per cent for the upcoming month.

He told The Jordan Times that the price of the 12-kilogramme gas cylinder, used for cooking and in winter for heating purposes, may increase to JD7.40 a unit from JD7.25, under the new pricing update, slated to be announced Wednesday night. 

The new prices will be effective from October 1 until the end of the month.