Fuel prices expected to remain stable in September

AMMAN — The prices of the main oil derivatives are likely to remain unchanged in the government’s monthly pricing update for September, set to be announced on Wednesday, according to an informed source. 

The source, who requested to remain unnamed, told The Jordan Times on Sunday that the global oil price of Brent crude, which is used to price oil internationally, hovered around $47 a barrel in the first three weeks of August, and rose to around $49 a barrel in last week’s trading. 

“The prices of Brent and ready fuel products internationally remained around those registered during July. So it is very likely that prices in the domestic market will remain stable,” said the source. 

At present, kerosene and diesel are sold at JD0.425 per litre, while the prices of unleaded 90-octane and 95-octane gasoline are sold at JD0.555 and JD0.720 per litre respectively. 

A government pricing committee meets monthly to adjust prices to correspond with changes in oil prices on the international market.

The government on June 22 decided to impose a fixed Treasury allowance on fuel amounting to 25 fils per litre, in light of 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. 

Prices of oil derivatives on the local market are calculated based on international prices, with the addition of other costs such as shipping, handling and taxes.

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