Aqeel: Brent's Rise Raises Limited Increase Probability on Fuel
Amman2 min read
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Energy expert Hashem Aqeel anticipated a limited adjustment to local oil derivatives prices at the beginning of next month, amid the continued rise of Brent crude and increased import and insurance costs, after a period of price stabilization during which the treasury absorbed part of the cost differences.
Aqeel said that initial readings of the oil markets indicate a widening gap between global prices and local pricing, increasing the likelihood of gradually reversing part of the global rise, without burdening the consumer all at once.
He explained that the price differences absorbed by the treasury as a result of price stabilization amounted to about a quarter of a billion dinars, equivalent to approximately $353 million, to alleviate living burdens. He added that the continuation of this cost puts pressure on public finances and limits the ability to maintain full stabilization for long periods.
Aqeel pointed out that the rise in global oil and refined product prices, along with increased transportation costs and risk and insurance premiums, are factors that affect the cost of imported derivatives. He explained that the policy of gradual pricing allows the impact of the rise to be distributed over phases, thereby reducing the shock on citizens and economic sectors.
He confirmed that the wave of rising fuel prices affects several countries, but its impact on the consumer varies according to the amount the government absorbs of the cost differences and the duration it can continue to do so.
