The Aim is to Remove the Allowance of Fuel Price Difference from the Industrial Sector

03-Jul-2019

An informed source confirmed that there is a serious study to remove the item instead of fuel price differentials on the industrial sector to enhance its competitiveness sector within the package of incentives considered by the government to stimulate the sector. 

The source pointed out to the "opinion" that the removal of fuel prices instead of the sector will provide the sector an estimated amount of 25 million dinars is currently received this item, noting that the results of the study will be announced soon, indicating that this measure will increase the export capacity of industry and national and saves the costs In the sector. 

The source added that repeated claims submitted by the Jordan Chamber of Industry to the government to remove this item from the energy bill to the factories after many complaints by the manufacturers indicated the decline in competitiveness compared with similar products in neighbouring countries, which led to weak competitiveness in alternative markets to enter it And maintain its share in the markets to which it exports, in addition to the weakness of competitiveness with imports from abroad, which are sold at prices lower than the factory locally. 

The source pointed out that the government is currently considering alternative incentives instead of the export support program which has been stopped from the industrial sector, including this alternative, in addition to the establishment of a joint stock company to promote exports in partnership with the private sector and the three industrial chambers. 

Last year, the government installed fuel price differentials on electricity tariffs for small industries so as not to exceed the total tariffs defined by the intermediate industries, which currently amount to 99 fils per day, and 85 fils per kilo Night supply. 

A study of the industrial sector indicated a negative causal relationship between the prices of energy and industrial production in Jordan, which is consistent with the results in studies around the world. 

The national industry is the mainstay of the national economy and employs more than 18% of the Kingdom's workforce, the majority of which is local labour, 25% of GDP, and nearly 90% of national exports to foreign markets.









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