Jordan Times
Sunday, April 9, 2006
Gov't hikes fuel
prices
By Mahmoud Al Abed and Khaled Nuaimat
AMMAN — The government on Saturday decided to
raise prices of fuel derivatives and disburse financial assistance to citizens
on low and medium incomes to offset the increase.
Government Spokesperson Nasser Judeh told reporters after a Cabinet session that
as of today, the prices of regular gasoline went up from JD0.385 to JD0.430 per
litre, super gasoline rose from JD0.505 to JD0.605 and unleaded gasoline
increased from JD0.545 to JD0.640.
The price of diesel and kerosene went up from JD0.220 to JD0.315 per litre.
Judeh said the price of gas used for cooking and heating was hiked from JD3.75
to JD4.25 per cylinder.
The spokesperson said the prices of electricity and bread will not change.
The government plans to completely lift fuel subsidy next year to reduce an
increasing budget deficit caused by surging international oil prices.
According to official figures, the oil bill paid by the treasury in 2005
amounted to JD530 million, despite two hikes of fuel prices in July and
September. It is forecasted that this year's oil bill will inflate to reach
JD1.755 billion.
The government, meanwhile, allocated JD100 million to support citizens on low
and medium incomes.
According to the plan, which was officially declared after the Cabinet meeting
yesterday, every citizen is entitled to cash support if his/her share in the
family's total annual income is less than JD1,000. Fifty per cent of the sum
will be paid in April and the rest in September.
For civil servants and members of the army, police, civil defence and security
agencies, the financial assistance will be added to their monthly salaries.
Other citizens are required to fill a form that will be available at post
offices and forward it to the Finance Ministry.
If the individual's share in the yearly income of the family is less than JD400,
he/she is entitled to support worth JD25 a year, provided that the total sum
paid to the entire family does not exceed JD150. If this share is between
JD400-800, the cash assistance for each individual will be JD15, and it will be
JD10 if the share is between JD800-1,000.