Association: Declining fuel prices send 17 gas stations out of business in Jordan 

(MENAFN - Jordan Times) Around 17 gas stations have gone out of business due to a series of drops in the prices of fuel derivatives, the latest which went into effect midnight Thursday, for the sixth time in a row since September.

Minister of Energy and Mineral Resources Khaldoun Qteishat told The Jordan Times that he called gas station sector leaders for a meeting to discuss the situation on Sunday.

President of the Gas Station Owners Association Fahed Fayez told The Jordan Times on Thursday that the syndicate members incurred huge losses estimated at JD8-12 million because of the continued decline in fuel prices since early September.

He said each gas station loses not less than JD3,000-4,000 every time prices go down.

In addition, he revealed that around 23 gas station owners have signed a 15-year lease contract with the French company TotalFinaElf Oil, which plans to increase its market share as a retail energy firm when the sector is liberalised next year.

"We will make it clear to the government during the forthcoming meeting that unless they reconsider our suggestions to address the frequent losses, the association members will stop buying fuel products from the Jordan Petroleum Refinery Company," he added.

Qteishat said officials and sector leaders "will exchange ideas and views on alternatives that would address the challenges at hand".

"It is true that doing business is about making profits, but sustaining losses now and then is a natural thing," the minister said, commenting on Fayez's complaints.

"Since prices started to drop, the accumulated percentage of decline amounted to around 30 per cent. However, when the government floated prices [in February], the profits gas stations made exceeded 65 per cent," Qteishat said.

According to the new list, which replaced the November 1 update, gasoline 90 and 95 are now sold for JD0.435 and JD0.505, down from JD0.475 and JD0.550 a litre respectively, while each litre of kerosene and diesel is now sold at JD0.460, down from JD0.490.

The price of cooking gas remained unchanged at JD6.5 per cylinder.