Sunday, August 12, 2007

Another fuel rise

The screen play for raising fuel prices has become monotonous. The boring show starts with an “independent” columnist at Al Rai starts to wring his hands about the budget deficit. Next, press leaks to the effect that there is a budget deficit, and that government subsidies are going to help the rich. Here it is forgotten that the government blames high inflation (which actually hurts the poor) on fuel price increases. This is a simple example of trying to have things both ways: subsidies don’t help the poor, and inflation is due to the elimination of the subsidies. Next there is an exaggerated rumor as the extent of the price rise. This is to make people grateful that the rise was not as bad as it might have been. Next, a promise to float the prices so that they reflect world oil prices, implying that someday prices might actually go down. Ha Ha.

At least this time we might be spared the coupon shtick. You never know.

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5 Comments:

At 6:22 PM, Blogger Mohanned said...

Gas for cars will go down, the government makes almost 150 million JDs as a profit, what will go up is natural gas-egypt now licked their promises and want to raise the prices- diesel will also go up, so in all I think the industrial sector will be hurt the most along with jordnians in the winter:)

But bakhit's image is already destroyed, so I am sure they will rasie the prices before he leaves, just like they did with kabariti..

 
At 6:41 PM, Blogger Khalaf said...

Mohanned: The summer raising of the diesel prices is probably designed to have a delayed effect. As for the gasoline prices, that will be tied to the eventual phasing out of leaded gas.

As for the effect on Bakhit, I doubt that it will make a difference.

 
At 9:26 AM, Blogger No_Angel said...

who is bakhit anyways :P
but i seriously doubt they will raise the price its just and itsy bitsy too late for that
the sooner september comes the less of a chance that has of happening

 
At 11:22 AM, Anonymous Anonymous said...

150 JDs as profit! Where did you get such a figure from? With oil prices past $70, the government is still subsidizing oil for Jordanians. I'm not trying to defend the government here, but let us be realistic. World oil prices are going up and the government has no choice really but to follow the market. They are planning to catch up with world oil prices, privatize refineries, and deregulate the sector as a whole to get out of the business and leave it to the efficient private sector.

 
At 7:00 PM, Blogger Mohanned said...

Nido, they sell "banzeen" much higer than it costs them and then use what they make to cover thier subsidizing for other petro products, and FYI jordan doesn't buy oil at the same price it is in the world market..

 

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