– The government adopted a policy of gradual adjustment and price
stabilization.

– The Treasury absorbed price differentials of JD224 million.

– Oil prices reached record levels, exceeding $120 per barrel.

Amman, Sept. 29 (Petra) — The government has absorbed oil price
shocks since regional tensions began, as crude reached record levels
above $120 a barrel to limit the direct impact on Jordanians and
economic sectors.

The government has borne a large share of the global rise in fuel
costs. It has not passed the full increases on to local prices.

It provides direct support of JD1.6 million a month for liquefied
petroleum gas allocated to the industrial sector. The aim is to
preserve the competitiveness of national products and contain local
production costs amid global market volatility.

Energy expert Hashem Aqel said the approach has prevented sudden
“price shocks” that would erode purchasing power, deepen inflation
and destabilize transport and production costs.

He told the Jordan News Agency (Petra): “When oil and fuel prices
rise sharply worldwide, monthly decisions do not pass on the full
increase. They reflect a partial share, with the remaining
differences spread over time or absorbed through the general budget.”

Aqel said that the policy delivers relative stability in local prices
and protects purchasing power and productive sectors in the short
term. He added that it places cumulative burdens on the treasury.

He added that the treasury has borne cumulative price differences of
JD224 million since regional tensions began because monthly pricing
has not reflected actual global prices.

The head of the General Association of Petrol and Gas Distribution
Station Owners, Nahar Saidat, said oil prices have risen sharply
since the tensions began. Insurance costs and transport fees have
tripled.

He said that the kingdom’s energy system has been managed prudently.
The government diversified its sources of imported oil, which secured
sufficient stocks while many neighboring countries faced shortages
and others rationed supplies.

Saidat said that crisis management extended to local prices, which
stayed at “acceptable” levels because global prices were not fully
passed on. He said the government bore the entire burden through a
policy of gradual adjustment and price fixing.

He said the government fixed prices last month despite the global
rise, which is still climbing this month.

Economic expert Munir Dayah said the decision to freeze fuel prices
for several months continues the government’s approach. He said the
government has passed on global increases gradually and absorbed a
large part of the price differences.

Aqel expects the cumulative price differences borne by the treasury
to reach JD250 million by the end of the month.

//Petra// NQ