AMMAN, Nov. 7 – Minister of Finance Dr Hamad Al-Kasasbah said that repeated government cuts in the price of oil derivatives have not been adequately reflected in local prices and consequently in the rate of inflation.
The minister noted that “the government cut local prices for oil derivatives five times since last August in response to the drop in world prices.”
Jordanian economist and former advisor to the Arab Economic Unity Council Khalid Al-Sharif stated that, “The wave of reductions in the price of oil products passed by the Jordanian government was meant to have a positive impact for Jordanians.”
He agrees, however, that general declines in the prices of other goods and services “were not enough in view of the government’s recent decision to reduce the price of fuel by 13 percent.”
But Al-Sharif thinks that “the reduction in the price of cement by 4.20 dinars [$5.93 USD] a ton on Nov. 2 was in response to the fuel price reductions” and predicts that “the next phase will be a reduction in the cost of main goods in Jordan which are directly linked to the drop in the price of oil derivatives because their prices are affected by transport costs.”
Jordan lowered fuel prices by five percent for the first time last Aug. 5 and followed this with four further price reductions, the most recent of which was last Oct. 31.