Jordan Times
Thursday, September 22, 2005

CPS launches campaign to limit impact of fuel hike

AMMAN (Petra) — The Consumer Protection Society (CPS) has launched a nationwide campaign to ration the use of various oil derivatives in a move designed to reduce the adverse effects of higher fuel prices.

CPS President Mohammad Obeidat said the campaign will promote several measures in an attempt to limit the economic impact of the government's decision on Tuesday to raise fuel prices.

Such measures will include educating local citizens on the benefits of car-pooling to reduce fuel consumption, promoting the use of solar energy and encouraging rural citizens to use wood for heating purposes instead of diesel or kerosene.

The Higher Youth Council, the Jordanian Women's Union and representatives of the media are also taking part in the campaign.

Following a Cabinet meeting late Tuesday the government announced a partial lifting of subsidies on oil derivatives in a move designed to combat the growing budget deficit, expected to reach JD722 million by the end of the year.

Under the decision, which stems from the spiralling price of oil on the international market, gasoline prices increased by 4.8 - 5.4 per cent, while diesel and kerosene rose by 22 per cent.

Meanwhile, Minister of Municipal Affairs Tawfiq Kreishan visited Zarqa on Wednesday and pledged government assistance for the municipal councils.

He said the government is planning to increase its annual assistance to these councils to reduce the adverse effects of the fuel hike.

Also yesterday, the Lower House Financial and Economic Committee on Wednesday called on the government to increase the salaries of employees to enable limited-income groups to cope with the economic situation following the increase in prices of fuel derivatives.

The committee said employees whose monthly salary is less than JD300 should be given a 25 per cent increase, while those earning between JD300 to JD400 should get a 15 per cent increment. The committee also recommended that those earning above JD400 be given a 10 per cent increase.

The committee suggested that the government could secure additional funds by imposing additional taxes on cigarettes, alcohol, and introducing tariffs on mobile lines and calls.

The panel also called for amending the Income Tax Law to ensure a more efficient collection process. In addition, the committee requested that tax exemptions granted to companies, institutions and banks be cancelled.


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