Amman, Aug 31 (Petra) – The Oil Derivatives Pricing Committee said on Monday it will fix fuel prices for the month of September despite soaring global crude prices.
The committee said it reviewed the August prices of oil derivatives and compared these to July prices, which showed a significant increase in average monthly prices, especially diesel and kerosene, amid ongoing geopolitical tensions in the region and their impact on global markets.
Despite the rise in global prices in August, and following government directives, the committee decided to fix the prices of the main oil derivatives for September, as follows: 90-octane gasoline: JD1.00/liter; 95-octane gasoline: JD1.31/liter; diesel: JD0.85/liter; kerosene: JD0.550/liter.
The price of a 12.5 kg domestic gas cylinder was also fixed at JD7.00 and also a subsidy for liquefied petroleum gas (LPG) prices for the industrial sector, valued at about JD1.6 million, will remain in September, it said.
The committee pointed out that the local pricing of petroleum derivatives is based on the monthly average of global prices during the 30 days preceding the pricing date.
However, as part of its gradual approach adopted since the crisis began, the government continues to absorb a significant portion of the increased global costs of petroleum derivatives, refraining from fully reflecting these increases in local prices to mitigate the impact on citizens and economic sectors, it said.
The cumulative price differences borne by the treasury due to this approach and the failure to reflect actual prices in the monthly pricing from the start of the crisis until the end of August, amounted to approximately JD224 million, including subsidies for domestic gas cylinders, it said.
The committee said maintaining prices for September reflects the government's commitment to reducing fluctuations in fuel prices domestically and providing greater stability for citizens and economic sectors, given the ongoing uncertainty in global markets resulting from influential geopolitical conditions.
It said it will continue assessing fluctuations in global energy markets and their impact on domestic costs on a monthly basis, in light of price developments and the geopolitical conditions affecting them.
//Petra//SS
