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Gov’t raises fuel prices by over 6%

By JT - Dec 31,2016 - Last updated at Dec 31,2016

Kerosene and diesel will be sold at JD0.465 per litre in January, up from JD0.435 (Photo by Osama Aqarbeh)

AMMAN — The government on Saturday decided to raise the prices of gasoline, kerosene and diesel by over 6 per cent, and to maintain the price of gas cylinders unchanged for January. 

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

Under the decision, kerosene and diesel will be sold at JD0.465 per litre, up from JD0.435, marking a 6.45 per cent increase.

The cost of one litre of unleaded 90-octane gasoline will go up by 6.45 per cent in January, to be sold at JD0.62, up from JD0.58, while a litre of unleaded 95-octane gasoline will sell for JD0.81, up from JD0.755, recording an increase of 6.79 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.

The committee said that it referred to international oil prices, which showed that the cost of a barrel of crude Brent oil went up from $45.01 in November to $53.2 in December, Petra reported.

Internationally, the committee said that the price of diesel went up by 11.8 per cent, and the price of unleaded 90-octane gasoline increased by 12.5 per cent, while the price of unleaded 95-octane gasoline registered an 11.8 per cent increase.

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.

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