A strike that could have stopped fuel distribution in the [Jordanin] Kingdom has been avoided after the government and the Gas Station Owners Association (GSOA) agreed to a deal raising stations’ royalties by 13-15 per cent.
GSOA President Fahed Al Fayez told The Jordan Times on Tuesday that the association and the Ministry of Energy and Mineral Resources had reached a last-minute agreement on Monday night to increase the royalties of gas cylinder distribution agencies and gas stations.
The deal was made one day ahead of a planned strike by gas distributors, who get JD0.97 per cylinder, according to Fayez, while the royalties of gas stations are 12 fils per litre.
Under the deal, royalties of cooking gas distributors will be around JD1.10 per cylinder, while those of gas stations will go up to over 13 fils per litre.
In March last year, gas stations threatened to stop ordering oil derivatives from the Jordan Petroleum Refinery Company due to a dispute with the fuel supplier over royalties, which pushed the government to raise them.
“What we demanded was higher than this percentage, but with the current economic conditions in the Kingdom what we obtained is positive,” Fayez said, adding that the increase in royalties will not affect consumer prices.
The association had requested that the increase in royalties be achieved by reducing the price at which fuel derivatives and cooking gas cylinders are sold to distributors, he explained.
According to the GSOA president, there are 438 gas stations in the Kingdom and 952 agencies that distribute gas cylinders.
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