Fuel prices [in Jordan] are expected to decrease by at least 5 per cent after midnight on Sunday, according to President of the Gas Stations Owners Association (GSOA) Fahed Al Fayez.
Fayez based his expectations on the average price of Brent Crude Oil in the global market during March, as the price per barrel stood between $107 and $109, while in February, its price peaked at $117 per barrel.
The government is set to announce its monthly price update of oil derivatives for the domestic market on Sunday, which will then go into effect in the early hours of Monday.
“Oil prices went down by 6 to 7 per cent internationally, which means that fuel prices in the domestic market should automatically drop,” Fayez told The Jordan Times over the phone on Saturday, saying the decrease on the Kingdom’s market should range between 5 per cent to 7 per cent.
Currently, motorists pay JD0.835 ($1.20) per one litre of unleaded 90-octane gas, while a litre of the higher quality 95-octane gas is sold at JD1.030 ($1.50).
Prices of both diesel and kerosene are JD0.710 ($1) per litre.
The price of cooking gas is set to remain unchanged at JD10 ($14) per cylinder, as authorities say that real cost of the price is JD13 ($18) per cylinder.
According to Fayez, demand on the four fuel products sharply declined in recent days as consumers expected a price decrease at the end of the month.
“Expectations that prices would drop and the warm temperatures were behind the decline in consumption,” the GSOA president explained.
Orders made by gas stations to the refinery were reduced to 4,000 tonnes a day over the past week. Average daily orders can reach around 8,000 tonnes, Fayez said, adding that he is expecting demand for fuel products to surge by the beginning of April.
Fuel prices are updated on a monthly basis based on recommendations by a pricing committee that reviews the changes to crude oil prices on the international market.
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