Fuel prices expected to stabilize, despite fears otherwise

Fuel prices expected to stabilize, despite fears otherwise
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Fahd Al-Fayez, Head of the Gas Stations Association, expects fuel prices to stabilize despite the public's fears that the government will raise fuel prices during the next re-pricing at the end of the month due to the interruption in Egyptian gas supply.

Future contracts for crude oil in Asian trade increased their oil prices on Wednesday because of expectations of higher demand in the coming month and a drop in US inventories, which raised London Brent crude oil delivery on August 30 to 113.91 dollars a barrel after closing on Tuesday. This was an increase of more than two dollars in its first gains in three sessions.

US light crude oil rose 75 cents to 97.64 dollars a barrel after the previous session's ending gains amounted to 1.95 dollars.

Fayez told AmmanNet that the recent amendment to  fuel prices set them for the end of the current month of July, indicating that natural gas has nothing to do with the gas used in homes.

Fayez pointed out that the government had been raising the subsidy on petroleum products from 2008 until December 27, 2010. He explained that the support is limited only to small gas cylinders.

He demanded that the government pay its dues to the oil refinery, which amounted to 633 million dinars, before any dire consequences can occur.

The Minister of Energy and Mineral Resources, Dr. Khaled Toukan, announced last month that the bill for fuel subsidies in the Kingdom reached 204 million dinars as a result of a recent installation of fuel prices.

Director of the Department of Economic Development said in "Al-Arab" newspaper last week that the government will provide about 400 million dinars to the treasury at the end of this year in the event of higher prices of fuel.

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