Fuel Prices Jordan
Part of: GIZ International Fuel Price database
Also see: Jordan Energy Situation
Fuel Pricing Policies
| Local Currency: | JOD |
| Exchange Rate: | 0.703
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| Last Update: |
For a long time Jordan depended on oil supplied from Iraq at preferential prices. After the Iraq war Jordan started reforming its pricing mechanism in 2005 which culminated in the elimination of subsidies on most petroleum products in 2008. A system of monthly price changes has been adopted since 8.2.2008. A committee formed of representatives of the finance, energy and trade ministry as well as the Jordanian Petroleum Refinery Company adjusts the prices based on a formula that follows the changes in the price of Brent crude oil during the previous 30 days. The new prices are announced via the news agency petra and are published on the website of the Ministry of Energy. The applied formula is not public and unclear.
Leaked US State Department cables show that oil-rich Gulf countries sometimes provided Jordan with oil at preferential rates, particularly after the fall of Sadam Hussein.
"Government controls, subsidizes, and infrequently adjusts fuel prices. Government removed subsidies from all fuels except LPG in Feb 2008 and adopted a monthly price adjustment mechanism, but stopped adjusting prices in Jan 2011. Gasoline, kerosene, and diesel prices were raised in Dec 2010, but lowered in Jan 2011 in response to the events in Tunisia and elsewhere in the region. The kerosene and diesel prices remained unchanged, except for a brief rise in Sep 2012. Until Nov 2012, the price of LPG sold in 12.5-kg cylinders had remained frozen for years, except for four weeks in early 2009 when the price was lowered slightly. In May 2012, Jordan raised the price of 95 RON gasoline to JD1 (US$1.41) a liter from JD0.795 (US$1.12), and substantially raised electricity tariffs for major industrial and service sectors. An expert panel formed by the prime minister in May 2011 recommended smart cards for subsidized goods instead of price subsidies. The increases in the prices of 90 RON gasoline and diesel were reversed in two days in Sep 2012 after street protests. In Nov 2012, finding it increasingly difficult to bear the fiscal burden, government increased the price of LPG in 12.5-kg cylinders by 54% and kerosene and diesel prices by 33%. Nation-wide protests were mounted in response, turning violent in some areas. Jordan Petroleum Refinery Company, a national oil company and Jordan’s sole refiner, posts current and historical fuel prices since 2008 on its Web site."
(Source: Kojima, Masami. (2013, forthcoming). “Petroleum product pricing and complementary policies:Experience of 65 developing countries since 2009.” Washington DC: World Bank.)
Fuel Prices and Trends
| Gasoline 95 Octane | Diesel | |
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* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil
Fuel Price Composition
Price composition.
No information available.
At a Glance
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No information available on the specification of the pricing formula applied.
Sources to the Public
| Type of Information | Web-Link / Source |
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| Other Information | http://204.180.229.21/external/pubs/ft/wp/2006/wp06247.pdf |
| Pump prices and margins | http://www.memr.gov.jo/Default.aspx |
Contact
Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices
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