Fuels pricing explained clearly
The analysis explains how fuel prices are set in Jordan, where the Pricing Committee relies on formulas that determine prices based on global oil prices, while also taking into account local costs, taxes, and government subsidies. It shows that increases in worldwide crude oil prices do not always directly translate to higher prices for gasoline or diesel, as the government follows policies of support and gradually reflects those increases, bearing part of the differences. Additionally, the prices of petroleum derivatives globally vary depending on each product's market and refining factors. The analysis also highlights that the government has implemented policies to ensure transparency by publishing price tables and pricing formulas, aiming to reduce misunderstandings and protect consumers. It is also a reminder that rising oil prices do not always lead to an immediate increase in tax revenues, as they are influenced by the extent of support and the policies of gradual price adjustments.
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