Jordan: Gas stations threaten strike amid dispute with refinery

Published March 18th, 2012 - 07:24 GMT
Gas stations owners have been complaining for several months that the quantities of oil derivatives arrive to stations are less than the ordered and paid for quantities
Gas stations owners have been complaining for several months that the quantities of oil derivatives arrive to stations are less than the ordered and paid for quantities

Gas stations will stop ordering oil derivatives from Jordan Petroleum Refinery Company (JPRC) as of Thursday amid disputes with Jordan’s sole fuel supplier, according to the Gas Station Owners Association (GSOA) President Fahed Fayez. He told The Jordan Times on Saturday that gas stations across the Kingdom will also stop receiving JPRC oil trucks as of next Sunday if the outstanding issues with the refinery are not solved by Thursday, indicating that stations will continue to supply their products until they run out. 

Gas stations owners have been complaining for several months that the quantities of oil derivatives arrive to stations are less than the ordered and paid for quantities, Fayez said, adding that a joint committee from GSOA, the Ministry of Energy and Mineral Resources and Jordan Institute for Standards and Metrology has carried out several random tests and measurements on the oil carried by the trucks and found a shortfall in the quantities. 

“The JPRC has agreed on the findings of the tests carried out three months ago,” he claimed, noting that over the past months authorities and the refinery company have been reluctant to solve the issue. Among the disputes with the refinery company, Fayez pointed out, gas stations want to double their royalties, which are currently at 9.8 fils per litre or 1.6 per cent of the price of the litre of oil derivatives.

“Such royalties have become unfeasible when taking into account the rising operational costs,” Fayez complained. Gas stations demand that their royalties increase to 20 to 25 fils or to be raised close to 4 per cent of the price of a litre of oil derivative, which is the case in neighbouring countries, he said. Raising the royalties will enable gas stations to improve their services and the quality of fuel they provide, according to Fayez, who noted that there are 372 gas stations operating in the country. 

The Jordan Times tried to contact JPRC but no officials were available to comment. Asked whether large chain gas stations, such as Total and Manaseer, will adhere to the planned stoppage or orders, Fayez mentioned that a representative from the Manaseer Group attended the GSOA general assembly meeting yesterday, when the decision was taken. “I believe the two companies will support the decision because meeting such demands is in their interest, particularly the issue related to raising royalties,” he said. 


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