Senior sources at the International Monetary Fund recently recommended that Jordan re-assess its fuel prices, reports London based Al-Hayat daily.
According to the Fund, current fuel prices in Jordan are excessively low, and should be increased in consistency with international prices.
Jordan receives its oil supply from Iraq through the Oil-for-Food Agreement. Per barrel cost for Iraqi oil to Jordan reached $21 in 2001, $19 in 2000 and $16 in 1999. This figure compares to $27.93—the price of crude oil on the New York Mercantile Exchange (NYMEX) at closing this past week. The highest price per barrel was $28.74.
The relatively high price of oil on NYMEX comes in the wake of Iraq’s decision to halt oil exports under the U.N. Oil-for-Food program, cutting nearly five percent of all the world’s oil exports.
Iraq’s decision came in response to the U.N. Security Council's choice to extend its Oil-for-Food program for one month only rather than for the usual six months. Until now, Iraq’s exports under the program amounted to nearly 2.1 million barrels per day.
In addition, Iraq also sells approximately 250,000 barrels per day to Jordan, Turkey and Syria at discounted rates outside the framework of the U.N. program. Payments for these exports are funneled directly to Saddam Hussein. –(MENA Report)
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