10-12% drop expected in fuel prices next month — gas station owners syndicate

AMMAN — Fuel prices are expected to go down by 10 or 12 per cent next month, Gas Stations Owners Association (GSOA) President Fahed Al Fayez said on Sunday.

Fayez based his expectations on the decline in the price of Brent crude oil, which stood at $45.46 per barrel on Saturday night.

He said the estimated drop should be applied in September if the government “is transparent” in calculating prices of oil derivatives.

“If the government, however, applies the same measures it took this month, then prices will drop by 8 per cent,” Fayez told The Jordan Times.

For this month, the government lowered prices of fuel products by between 3.2 per cent and around 6.2 per cent.

Before the decision, Fayez had expected prices to be down by no less than 6-8.5 per cent. 

Currently, one litre of unleaded 90-octane gasoline is sold at JD0.62 and a litre of unleaded 95-octane gasoline costs JD0.80.

The 12-kilogramme gas cylinder, used for cooking and in winter for heating purposes, is sold at JD7.50.

Fayez expected the price of gas cylinders will also witness a drop by 250 fils.

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.