Gas station owners demand sales commission increase amid inflation, high operational costs in Jordan

Gas station owners demand sales commission increase amid inflation, high operational costs in Jordan

AMMAN — The Gas Station Owners Association (GSOA) is calling on the government to increase the energy sector’s commission on the sale of petroleum derivatives by 22 fils per litre considering the increases in inflation and the operational costs.

GSOA President Nahar Seidat told The Jordan Times that the energy sector is struggling financially, forcing many petrol stations to close down due to years of accumulated losses.

“We demand the government to increase the fuel sector’s sales commission from 18 fils per litre to 40,” Seidat said.

“Most petrol stations in the Kingdom have become unprofitable, except for some stations in Amman and Aqaba,” Seidat added.

According to the GSOA president, 46 per cent of fuel consumption is concentrated in the capital, where diesel accounts for 52 per cent of local fuel consumption. Gasoline constitutes the majority of the remaining consumption percentage, with a very limited percentage attributed to kerosene consumption.

“Over the past several years, there has been a significant increase in operational costs for petrol stations, such as rising social security rates and work permit fees for foreign employees,” Seidat said.

Moreover, the continuous rise in operating capital requirements, along with interest rates hikes and other associated costs, have contributed to the financial burden