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Gov’t reduces fuel prices by 3.4-4.3%

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

The prices of unleaded 90-octane and 95-octane gasoline will see a 4.3 and 3.4 per cent decrease respectively in August (Photo by Amjad Ghsoun)

AMMAN — The government on Sunday decided to reduce gasoline, kerosene and diesel prices and to maintain the price of gas cylinders, said Deputy Prime Minister for Economic Affairs Jawad Anani. 

Fuel prices will be reduced by between 3.4 and 4.3 per cent, while the price of gas cylinders will remain unchanged at JD7, said Anani, who is also the minister of industry, trade and supply.

The government’s decision, effective from Monday, was taken in accordance with the recommendations of the fuel pricing committee, which convened earlier, according to a ministry statement. 

Under the decision, kerosene and diesel in August will be sold at JD0.425 per litre, down from JD0.440 per litre in July, witnessing a decrease of around 3.4 per cent.

The prices of unleaded 90-octane and 95-octane gasoline will see a 4.3 and 3.4 per cent decrease respectively.

One litre of unleaded 90-octane gasoline will be sold at JD0.555, down from JD0.580, while a litre of unleaded 95-octane gasoline will be sold at JD0.720, instead of JD0.745, the statement said.

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.

 

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

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