AMMAN — The government does not import any
oil derivatives directly,
Minister of Energy and Mineral Resources Saleh Al-Kharabsheh said Monday, explaining that oil products are imported to Jordan
via the private sector, according to local media outlets.
اضافة اعلان
Kharabsheh said that the government is unable to
import large quantities of oil when its prices drop, as demanded by some
lawmakers.
Speaking at a meeting of the
Lower House Energy and Mineral Resources Committee, Kharabsheh said that the government imports around
10,000 barrels of oil daily from Iraq, at a $16 discount compared to the global
oil price.
“The difference in the import price from Iraq comes
from the expenses for inspection, quality teams, and additional transportation
costs, bringing the difference (saving) from the global price to about $20
million per year,” he said.
The minister clarified that 60 percent of Jordan’s
needed of oil products are imported as refined derivatives, and around 40
percent are refined at Jordan Petroleum Refinery Company, which has a refining
capacity of 50,000 barrels per day.
Kharabsheh stressed that the pricing mechanism for
oil derivatives is clearly stipulated in the regulation issued in 2019, which
defines it within clear criteria.
He indicated that there was no increase in kerosene
and diesel retail prices from November 2021 until April 2022, when diesel was
sold at less than its cost price.
Kharabsheh indicated that the fixed tax is as
follows: 370 fils per liter of octane 90 gasoline, 570.5 fils per liter of
octane 95 gasoline, and 160.5 fils per liter of kerosene and diesel. Taxes from
fuel go to the state’s general budget and the amount is spent on education,
health, and the National Aid Fund, according to the minister.
He stated that the cost of refining has more than
quadrupled since 2012, indicating that raising the prices of oil derivatives
does not compensate for any part of the budget deficit.
Meanwhile, the head of the Lower House Energy and
Mineral Resources Committee,
Firas Al-Ajarmeh, said that fixed taxes on oil
derivatives have burdened citizens. He called for coming up with a clear and
transparent mechanism for pricing oil derivatives, and looking for alternatives
to the fixed tax imposed on fuel, adding that “international oil prices have
decreased, and therefore they must be reduced locally”.
Several deputies asked that alternatives be found to
the fixed tax for each petroleum derivative, which has exhausted citizens,
adding that fuel hikes have been reflected in the cost of food and other
essential.
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