Gov’t open to reviewing fuel pricing mechanism — Saif

AMMAN — The government is willing to review the fuel pricing mechanism to enable the private sector to import oil derivatives, Energy Minister Ibrahim Saif said on Monday 

“The ministry is ready to modify the monthly pricing mechanism to be more flexible and thus allow private companies to import and sell oil products,” the Jordan News Agency, Petra, quoted Saif as saying.

The minister’s remarks came during a meeting at the Lower House with private sector representatives of and the Gas Station Owners Association. 

The meeting was called by the House’s National Coalition bloc, according to Petra.

Saif said the ministry is open to all private sector suggestions aiming to facilitate the import of refined petroleum products, attributing the sector’s challenges and difficulties to the lack of measures to liberalise the oil market. 

Allowing the private sector to import refined petroleum products into the domestic market has been a pressing call for economists who cited such move’s importance as a proper alternative for authorities to cut the cost of fuel subsidies.

Pundits have also argued that liberalising the market of oil derivatives will not only save the budget hundreds of millions of dinars but also generate revenues to the Treasury.

A government pricing committee meets monthly to adjust fuel prices in a manner that corresponds to changes in oil prices on the international market. 

The government lifted subsidies on oil derivatives in November 2012.

Their prices in the local market are now calculated based on international prices of oil, with the addition of other costs such as shipment, handling and taxes on gasoline, according to the government.