Gov’t lowers fuel prices by around 3%

AMMAN — The government on Wednesday decided to decrease the prices of gasoline, kerosene and diesel by at least 3 per cent, and to maintain the price of gas cylinders unchanged for December.

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

Under the decision, announced by Industry, Trade and Supply Minister Yarub Qudah, kerosene and diesel will be sold at JD0.435 per litre, down from JD0.455, marking a 4.4 per cent drop.

The cost of one litre of unleaded 90-octane gasoline will drop by 3.3 per cent in December, to be sold at JD0.580, down from JD0.600, while a litre of unleaded 95-octane gasoline will sell for JD0.755, down from JD0.780, recording a drop of 3.2 per cent.

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.

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.

Overall taxes on oil derivatives are as follows: 22 per cent on 90 octane, 40 per cent on 95-octane and 6 per cent for all other fuel products, except for heavy oil.

All derivatives are subject to a JD0.006 stamp fee.

In June, the government also decided to impose a fixed Treasury allowance on fuel amounting to 25 fils per litre, in line with Jordan’s agreement with the International Monetary Fund and in implementation of the Cabinet decision to add 25 fils to fuel prices to support the budget.