Jordan Times
Tuesday, April 18, 2006
Gov't committed to alleviating burden of oil hike
AMMAN — The government is taking a number of measures to alleviate the increased burden on citizens as a result of recent oil price hikes, Government Spokesperson Nasser Judeh told reporters during the weekly press conference on Monday.
His Majesty King Abdullah on Thursday sent a letter to the government in which he issued directives to help citizens after the government's decision to increase the prices of oil derivatives earlier this month.
“The King directed the government to form a social solidarity committee and gave a deadline of the middle of next month to complete this committee's structure and framework,” said Judeh.
The hike in the prices of oil derivatives earlier this month was the third in the past 10 months.
The government has committed itself to the full liberalisation of fuel prices in a bid to reduce an increasing budget deficit caused by surging international oil prices.
According to official figures, the oil bill in 2005 amounted to JD530 million, despite the two fuel price hikes in July and September. This year's oil bill is forecast to reach JD1.755 billion.
“The King has stressed the need to find local alternatives for imported oil, Judeh said, explaining that the government has received offers from investors with regards to shale oil extraction and has been talking with Shell International to extract shale oil from the north and eastern parts of the country.
Judeh said the government also intends to amend the Income Tax Law to achieve “more justice among citizens and adequate earnings for the Treasury.”
Meanwhile, Judeh told reporters that Palestinian Foreign Minister Mahmoud Zahar “is expected” to visit the Kingdom on Wednesday to meet with Foreign Minister Abdul Ilah Khatib.
Regarding the previous week's Gafgafa prison incident, which resulted in the death of an inmate and 20 injured, Judeh admitted that there were problems in the Kingdom's prison system.
He said problems included weak buildings and overcrowding. Judeh said the government had formed a committee to investigate the state of prisons in the Kingdom, adding that this committee would submit its report “very soon.”