AMMAN —
Experts have warned that the
government’s intention to raise local fuel prices
next month, to reflect global energy increases in the past two months, would
cause a noticeable hike in prices that consumers and the recovering economy
cannot afford, according to Al-Ghad News.
اضافة اعلان
They indicated that
inflationary factors will have negative impacts that will limit consumption,
which will harm the economy. These remarks were made in reaction to Prime
Minister
Bisher Al-Khasawneh’s statements on Wednesday, when he said that the
government will resort to setting the price of oil derivatives in the local
market in accordance to their prices in the global market.
The government has
been fixing the price of oil derivatives since November 2021, except for making
a slight increase on gasoline prices in December. Khasawneh said that fixing
the prices had cost the Treasury JD162 million.
Former minister of
public sector development Maher Madadha said if the government is forced to
accommodate local fuel prices as per global prices, then there would be a major
inflation impact on consumers that would not only include fuel prices, but will
affect many goods and services.
Madadha indicated
that the national
economy and consumers will be negatively affected. He added
that people’s purchasing power will decline significantly as a result of a hike
in inflation rate, and that will affect government revenues as well.
Meanwhile,
economist and specialist in oil and energy affairs
Amer Shobaki predicted that
oil derivatives’ prices to increase by JD0.05 per liter in May, according to
AmmanNet.
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