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Government raises fuel prices by 6-11%

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

As of April 1, one litre of unleaded 90-octane gasoline will be sold at JD0.525, while a litre of unleaded 95-octane gasoline will be sold at JD0.695 (Photo by Amjad Ghsoun)

AMMAN — The government on Thursday decided to increase the prices of gasoline, kerosene and diesel by 6 to 11 per cent and maintained the price of gas cylinders unchanged at JD7.

The government’s decision, effective as of Friday, was taken in accordance with the recommendations of the fuel pricing committee, which convened on Thursday, Industry and Trade Minister Maha Ali said in a statement.

Under the decision, kerosene and diesel will be 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 will see a 6.06 and 6.92 per cent increase under the decision respectively.

One litre of unleaded 90-octane gasoline will be sold at JD0.525 instead of JD0.495, while a litre of unleaded 95-octane gasoline will be 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.

In remarks to The Jordan Times earlier this month, chair of the Lower House Energy Committee MP Raed Khalaileh expected the prices of fuel in April to rise by 10 per cent.

 

Khalaileh said the rise in the price of crude Brent oil would lead to the expected increase.

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