Lower House panel says no changes expected to fuel prices in May

AMMAN — The Lower House energy committee expects the prices of fuel products to remain the same in May, despite the rise in global prices.

"Initial readings show that the prices of fuel should remain unchanged in May. We will most likely recommend that in the committee meeting the beginning of next month," head of the panel, MP Raed Khalaileh, told The Jordan Times on Monday.

He noted that the global increase in prices "does not require increasing them locally".

"The rise in global fuel prices only stands between 1 to 2 per cent," Khalaileh said.

In April, the government increased the prices of gasoline, kerosene and diesel by 6 to 11 per cent and maintained the price of gas cylinders unchanged at JD7.

Kerosene and diesel are currently sold at JD0.355 per litre, up from JD0.32 per litre, an increase of around 11 per cent.

The price of unleaded 90-octane and 95-octane gasoline saw  a 6.06 and 6.92 per cent increase under the decision respectively.

One litre of unleaded 90-octane gasoline is sold at JD0.525 instead of JD0.495, while a litre of unleaded 95-octane gasoline is sold at JD0.695, up from JD0.65.

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 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 and 40 per cent on 95-octane, while the tax is 6 per cent for all other fuel products, except for heavy oil.

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