Gasoline prices expected to drop, diesel to rise in Jordan’s July pricing
Energy affairs expert Amer Al-Shobaki predicts that the Jordanian government will reduce gasoline prices and increase diesel prices for July. Speaking to Roya on Thursday, Al-Shobaki forecasted a 1.5 piaster per liter decrease for both 90-octane and 95-octane gasoline, while diesel prices are expected to rise by 0.5 piaster per liter.
He explained that the global monthly average of petroleum product prices showed a decline in gasoline prices and an increase in diesel prices.
Al-Shobaki noted that oil prices fell in the first half of June due to OPEC+ decisions and the gradual abandonment of voluntary cuts. However, prices rebounded in the second half of the month amid rising tensions and the potential for conflict between the Israeli Occupation and Hezbollah, with the possibility of Iranian involvement affecting oil production or disrupting oil transit through the Strait of Hormuz, a crucial route for 21% of the world’s oil.
Global prices for refined products, used by Jordan’s fuel pricing committee, fluctuated due to reduced Russian diesel supply, higher global demand for electricity generation during a northern hemisphere heatwave, and the need for ships to navigate around the Cape of Good Hope due to ongoing disruptions at the Bab al-Mandab Strait. Gasoline demand fell short of expectations despite the start of the travel and holiday season.
In early June, the Jordanian government made significant reductions in fuel prices: a 4.5 piaster per liter cut for both types of gasoline and a 3.5 piaster per liter cut for diesel, with kerosene prices remaining unchanged. Current prices are: 90-octane gasoline at 91.5 piasters per liter, 95-octane gasoline at 115.5 piasters per liter, diesel at 70 piasters per liter, and kerosene at 62 piasters per liter.
The Ministry of Energy and Mineral Resources reported an increase in oil derivative prices during the third week of June compared to the second week. The average price of 90-octane gasoline rose to USD 759 per ton, up 3% from USD 735. The price of 95-octane gasoline increased to USD 808 per ton, up 3% from USD 784.
Diesel prices rose from USD 679 per ton to USD 704 per ton, an increase of 4%. Kerosene prices increased from USD 738 per ton to USD 756 per ton, up 2%. The price of fuel oil rose from USD 495 per ton to USD 511 per ton, an increase of 3%.
In contrast, the average price of liquefied petroleum gas (LPG) fell to USD 569 per ton in June, down 3% from USD 584 in May. Brent crude oil prices also rose in the third week of June, averaging around USD 86 per barrel, up 6% from USD 81 in the second week.
