Wednesday, March 12, 2008

More on the new oil policy

Yesterday, I talked about how the government is insisting on monopolizing oil imports and pricing in the country. Today, Ali Rawashdeh has a report in Al Arab al Yawm concerning the new plans for the oil sector.

The most interesting part of the report is the agreement between the government and the Jordan Petroleum Refinery Company to regulate relationships after the ending of the concession agreement. The company will get one out of four licenses to distribute oil products in the country.

Noteworthy is that the agreement stipulates that distribution companies that will be set up will be obliged to buy 75% of their fuel from the JPRC.

Kind of defeats the purpose, don’t you think?

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3 Comments:

At 3:29 PM, Blogger Mohanned said...

Would you believe me if I told you all of this is a dejavu?

:P

 
At 7:48 PM, Anonymous Ahmad Al-Sholi said...

I would like to understand how can this be profitable for investors, since the logistics will be handeled by the JOPR with all the defficiencies that they may have and extra cost that they will sell at.

 
At 10:54 AM, Blogger Khalaf said...

Mohanned: Unfortunately, you are right.

Ahmad: Of course, this deal is meant to curtail real competition in the petroleum sector. This is obvious.

 

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