Ammon News - AMMONNEWS - The government decided to put on hold the monthly fuel pricing mechanism on some of the key oil derivatives for the month of July only, until a more transparent and clear formula that it had pledged to unveil is in place.

The decision kept unchanged the prices of 90-octane and 95-octane gasoline and diesel and kerosene and also kept in place the subsidy on cooking gas cylinders, but amended the rates of the rest of the derivatives to match globally soaring petroleum prices.

The government said that it will in the next few days announce the mechanism to price fuels in all its aspects and components.

Global oil rates showed a rise in most derivatives as Brent crude had climbed from 71.63 dollars a barrel in April to 74.33 dollars in June, and accordingly, the prices of the main derivatives should have been hiked by JD0.015 per litre in July, the government explained.

It said that the government will deal with the consequences of the decision, which burdens the treasury, through spending control measures, while emphasising that the Committee on the Pricing of Oil Derivatives will return to work under the monthly pricing mechanism as of the end of July.

In line with today's decision, the committee will keep the price of gasoline 90-octane during the month of July at JD0.815 per litre, gasoline 95-octane at JD1.050 per litre, and diesel and kerosene at JD0.615 per litre. A cooking gas cylinder's price will remain at JD7.

The pricing of oil derivatives is based on the average global price of each of the oil derivatives according to the Global Platts Commodities Bulletin, which is the reference to international prices for a month, plus all the costs of delivery to the consumer, including transport, storage and handling taxes and duties and allowances.