(MENAFN- Jordan Times) Minister of Energy and Mineral Resources Alaa Batayneh on Wednesday said annual subsidies for oil derivatives are expected to reach around JD650 million, "in light of a sharp increase that fuel prices have witnessed recently".
Batayneh said prices of crude oil have seen a sharp increase, noting that a rise in average prices of crude oil by $1 a barrel from their current prices will cause the annual subsidies to go up by $40 million, the Jordan News Agency, Petra, reported.
On international markets, the average price of Brent Crude Oil was $94.84 a barrel in June and went up to $102.59 a barrel in July, while during the first three weeks of August, it was sold for $112.82.
On Tuesday, the price reached $116.07 a barrel, "which brought about a large increase in oil subsidies", the minister said.
Batayneh said the subsidy rate for unleaded 90-octane gasoline has reached 12.1 per cent, and the total annual subsidy is forecast to reach JD100 million, while unleaded 95-octane gasoline is currently sold at cost price.
Moreover, the subsidy rate for diesel and kerosene has reached 28.2 per cent, and the annual subsidy is expected to reach JD425 million, the minister noted.
The subsidy rate for 12.5kg liquefied petroleum gas cylinder has reached 51.9 per cent and the annual subsidy is expected to reach JD95 million, he added.
Despite the economic corrective decision package, the government's bill of subsidies, including those for staples, is expected to amount to more than JD2 billion by the end of the current year.
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