AMMAN -- While a recent government decision to increase fuel prices has been frozen, a 1.5 per cent hike in the price of 95-octane gasoline remains in force, with the government and sector stakeholders offering conflicting explanations for this increase.
On August 31, the government decided to raise the price of 90-octane gasoline from JD0.70 per litre to JD0.77, a 10 per cent rise, and the price of diesel from JD0.515 per litre to JD0.550.
The price update went into effect September 1, but later His Majesty King Abdullah directed the government to freeze the decision, which was met by anger among the public and political parties as well as lawmakers.
In the government's statement announcing the price increases, it said the price of 95-octane gas had been floated, not increased, and that a rise of 15 fils from its previous price of JD1 per litre was the decision of gas station owners.
Gas Station Owners Association (GSOA) Director Ahmad Hattab, however, insisted that the government had raised the price in its decision.
A copy of the price update, which Hattab sent to The Jordan Times, shows that gas stations were instructed to price the higher-quality fuel at JD1.015 per litre.
Despite several attempts to contact Energy Ministry Secretary General Farouk Hiary, who heads the pricing committee of fuel products, he was not available for comment.
According to GSOA figures, consumption of 90-octane gas is nearly 10 times that of the more expensive 95-octane.
Daily consumption of 90-octane gasoline ranges between 3,300 and 3,700 tonnes, while consumption of 95-octane fuel is between 300 and 400 tonnes a day, according to the association.
© Jordan Times 2012
