Fuel prices in Jordan

Fuel prices in Jordan

Updated Tuesday, April 1, 2025

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Energy Resources in Jordan

In recent years, Jordan has faced challenges in meeting its growing energy demands due to limited domestic resources. As a result, the country heavily relies on imported energy sources. This article will provide a comprehensive analysis of the fuel sources available in Jordan and the pricing calculation mechanisms.

1. Fuel Sources in Jordan

A. Fossil Fuels

- Crude Oil: Jordan is not a significant oil producer; it imports most of its crude oil requirements from neighboring countries like Saudi Arabia and Iraq. These imports are used for refining and production of petroleum products such as gasoline, diesel, and kerosene.

- Natural Gas: Jordan began importing natural gas from Egypt in 2003 through the Arab Gas Pipeline. The country also imports Liquefied Natural Gas (LNG) to diversify its energy sources and reduce its reliance on imported oil.

B. Renewable Energy

- Solar Power: With abundant sunshine, Jordan has great potential for solar energy production. The government has initiated multiple projects to harness solar energy, including photovoltaic (PV) plants and concentrated solar power (CSP) facilities.

- Wind Power: Jordan is investing in wind energy projects to generate electricity, particularly in the southern and eastern regions where wind resources are more abundant.

2. Fuel Pricing Calculation in Jordan The Jordanian government regulates fuel prices through the Ministry of Energy and Mineral Resources (MEMR). Fuel pricing is based on a pricing formula that considers various factors:

- Cost of imported crude oil or refined products

- Transportation and storage costs

- Customs and taxes

- Distribution and marketing costs

- Profit margins for fuel distributors and retailers

The MEMR reviews fuel prices periodically (usually monthly) and adjusts them according to changes in the international oil market.

3. Challenges and Opportunities in Jordan's Energy Sector

A. Challenges

- Heavy reliance on imported fossil fuels: The increasing dependence on imported fossil fuels places a burden on Jordan's economy and makes the country vulnerable to fluctuations in global energy prices.

- Limited local energy resources: Due to the scarcity of local energy resources, Jordan faces challenges in providing sustainable and reliable energy to its population and economy.

B. Opportunities

- Developing the renewable energy sector: Investments in renewable energy sources, such as solar and wind power, offer an opportunity to reduce Jordan's dependence on fossil fuels and bolster energy security.

- Enhancing energy efficiency: Jordan can improve energy usage and reduce costs by implementing energy-saving measures and promoting energy-efficient technologies.

Historical Fuel Prices in Jordan