Jordan Times
Thursday, April 21, 2005

No hike in oil derivative prices — Khader

AMMAN (JT) — The government has no present intention to increase the price of oil derivatives, a senior official announced on Wednesday.

Government Spokesperson Asma Khader told reporters that the government “is seriously engaged with studying alternatives to reduce the cost of the oil bill, including reliance on gas to generate electricity.”

She said the government would further expand this plan through a pilot project in Aqaba where gas is to be distributed through a network of pipes for various uses. The Jordan News Agency, Petra, quoted Khader, who is also the culture minister, as saying that Jordan plans to buy gas from Egypt for industrial use.

According to Petra, Minister of Energy and Mineral Resources Azmi Khreisat made a presentation at Tuesday's Cabinet meeting on his ministry's plan to cut down oil purchases.

The previous government announced that it would apply a gradual increase in the price of oil derivatives over a five year period starting with the current year as part of a plan to remove subsidies on this commodity.

Officials last year cited the soaring world oil prices and the disruption of oil supplies from Iraq after the US-led invasion as the key determinent behind the planned move.


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