Ammon News - Energy expert Hashim Aqel revealed on Sunday eight key factors driving increases in fuel prices, particularly gasoline and diesel.

Aqel told "Ammon News" that higher gasoline and diesel prices do not necessarily mean that crude oil prices alone have risen. Refined petroleum products can increase more sharply due to shortages in refined products, higher transportation and insurance costs, demand, and refining margins.

He added that Jordan is a net importer of oil, gasoline, diesel and gas, all of which are globally priced commodities. Other costs have also risen due to geopolitical tensions, supply shortages, reduced refining capacity and higher refining margins.

According to Aqel, higher prices for petroleum products, particularly gasoline and diesel, are generally driven by several key factors:

1. Higher global crude oil prices, which are the main component of gasoline and diesel costs.

2. Geopolitical tensions and wars threatening oil supplies and transportation routes, including instability in the Middle East, risks surrounding the Strait of Hormuz, the renewed threat to the Bab el-Mandeb Strait, and the Russia-Ukraine war.

3. Higher global prices for refined petroleum products, not just crude oil, due to increased demand or limited refining capacity.

4. Higher shipping and insurance costs resulting from security risks and longer tanker routes.

5. Declining global inventories, increasing competition for available supplies and pushing prices higher.

6. The US dollar exchange rate, as oil and petroleum products are globally priced in dollars.

7. Seasonal demand, particularly increased gasoline consumption during travel seasons and higher diesel demand during cold weather or periods of increased industrial activity.

8. Refining margins, distribution, transportation and storage costs, all of which affect the final price paid by consumers, particularly in oil-importing countries such as Jordan.

Aqel also pointed out that 9 million barrels per day of refined petroleum product exports from the Gulf and Russia are currently missing from global markets.