(MENAFN- Jordan Times) AMMAN - Demand for fuel derivatives, specifically gas cylinders and diesel, dropped by 30 per cent in the last two weeks, which indicates an overall slowdown of the economic wheel, according to the Gas Station Owners Association (GSOA).
GSOA President Nahar Seedat told The Jordan Times on Monday that demand for several fuel derivatives dropped“dramatically”.
Seedat also indicated that demand for kerosene is currently“zero”.
According to Seedat, the drop in demand for gas cylinders and kerosene can be attributed to the good weather conditions in the Kingdom.
Additionally, the majority of low and middle income households shifted from kerosene heaters to gas heaters due to the significant increase in kerosene prices nationally.
“Demand for gas cylinders stood at 120,000 cylinders daily, in comparison with 150,000 cylinders daily during the same period of last year,” Seedat added.
“Jordan consumes almost four billion litres of fuel derivatives annually,” he noted.
However, the truck owners' strike slows down the demand for diesel, said Seedat.
Economist Khaled Salameh told The Jordan Times that the drop in demand has both long-term and short-term impacts on households and the economy.
“Higher fuel prices mean that each household will increase their fuel expenses, leaving less to spend on other goods and services,” Salameh added.
Meanwhile, diesel consumption is a bellwether for economic activity, he said.
According to Seedat, based on the association's readings for global fuel prices, there is a global decline in diesel and gasoline prices, which will“hopefully” be reflected in the prices locally by the end of this month.
MENAFN19122022000028011005ID1105330376
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.