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After a package of mitigating decisions.. Are the fuel crisis and the truck strike in Jordan heading toward a solution?

2022-12-19T07:47:40.187Z


The scene of the strike of trucks and public transport continues in Jordan to protest the rise in fuel prices, while the joint committee between the Council of Ministers and the House of Representatives concluded a package of mitigating decisions to maintain security and stability.


Amman

- The scene of the truck strike and public transportation in Jordan developed into a general strike in Ma'an Governorate (southern Jordan), and soon spread to a number of Jordanian governorates, while the joint committee between the Council of Ministers and Representatives concluded a package of "mitigating decisions to maintain security and stability, and give priority to Public interest".

The decisions included an increase in freight fares, raising the value of cash support provided to internal public transportation, fixing the prices of “kerosene” used for heating throughout the winter months, local banks postponing loans for Jordanians for the current month, as well as providing cash support to warm poor and needy families, and continuing to support a package of commodities for the next year 2023.

On the fourth of December, the Union of Truck Owners and Workers on Land Transport Lines announced a strike, demanding a reduction in the prices of oil derivatives, especially diesel, which constitutes 40% of the operating costs of the public transport sector, and an increase in transportation fares for trucks.

Closing roads and attacking buses

On the international desert road linking the ports of the coastal city of Aqaba in southern Jordan (330 km) and the governorates of the Kingdom, demonstrators attacked trucks, buses and tanks loaded with oil derivatives, which called on the public security forces to provide protection for these trucks and open the roads that were closed by the protesters.

Despite the "mitigating government decisions", the general strike in Ma'an Governorate - in solidarity with the strike of truck drivers and the public transport sector demanding a reduction in fuel prices - stopped the commercial movement in the city, the roads were empty of pedestrians, and Al-Hussein Bin Talal University suspended the attendance of students there.

Yesterday evening, Wednesday, Jordanian cities witnessed demonstrations by supporters of the truck strike, which developed into closing main roads with burning tires, and clashes with public security forces, who dispersed the demonstrators, reopened the roads, and put out the tire fires.

mitigating decisions

Yesterday evening, Wednesday, the Prime Ministry announced a package of "mitigating decisions" after consultation and agreement with the parliamentary committee formed by the House of Representatives to follow up the strike of trucks and public transportation, headed by Parliament Speaker Ahmed Safadi.

Government decisions to address the demands of the Truck and Public Transport Owners Syndicate included the following:

  • An increase of 1.5 dinars per ton ($2.1) in freight charges for phosphate, potash and sulfur.

  • Increasing container shipping fees by 52 dinars ($73) to 500 dinars ($704), instead of 448 dinars ($631) per ton, up to 25 tons of container weight on the Amman/Aqaba axis.

  • Stabilizing the price of kerosene during the winter season, and not raising its prices even if they rise globally.

  • Reversing any decrease in the prices of oil derivatives in the event that they continue to decline at the current pace globally on all oil derivatives.

  • Continuing to subsidize a package of commodities amounting to 277 million dinars ($390 million), which are allocated in the 2023 budget.

  • Increasing the number of students benefiting from the Poor Student Support Fund, which will reflect positively on thousands of Jordanian families.

  • Disbursement of winter aid to all poor families benefiting from the repeated monthly aid programs and the unified cash support program in the amount of 3.5 million dinars ($4.9 million). This aid benefits 219,000 families.

  • Disbursement of fuel support from the National Aid Fund to poor and needy families for the current month, amounting to 2.6 million dinars (3.6 million dollars), in order to mitigate the effects of the increase in fuel prices.

  •  Meeting the demands of the internal public transport sector “buses, taxis and services” by providing financial support of 6 million dinars ($8.4 million) for the first quarter of the year 2023. The authorities provided cash support for public transport at the rate of 5 million dinars ($7 million) during the second half of the year 2022, to prevent raising transportation fares for citizens.

  • In addition to the decision of the Association of Banks to postpone debt installments on Jordanians for the current month, in appreciation of the Jordanian banks for the economic conditions in these circumstances.

The prices of oil derivatives in Jordan witnessed successive increases that amounted to 16 increases during 2021-2022, and diesel witnessed a 45% increase during the current year, and the Jordanian authorities provided support for oil derivatives during the first quarter of 2022 by 550 million dinars ($ 774 million) after fixing their prices despite global heights.

Prices of oil derivatives in Jordan witnessed successive increases during the period 2021-2022 (Anatolia)

Aqaba.. a troubled port

On the ground, the Chambers of Industry and Commerce warned of the consequences of the continuation of the truck strike and the interruption of supply chains locally, which portends a disaster for the local economy.

It also warned that the strike would have a negative impact on the Jordanian industrial export sector, which achieved significant growth approaching 7 billion dinars ($9.8 billion) during the first 11 months of 2022.

The head of the Jordan and Amman Chamber of Industry, Fathi al-Jaghbir, said that 160 industrial companies suffer from the accumulation of about 1,200 production input containers stuck in the port of Aqaba, in addition to 750 containers awaiting transportation for export purposes, and more than 40 factories have stopped working due to the lack of production inputs.

Al-Jaghbir warned - in press statements - of the consequences of declaring the port of Aqaba a "crisis port", which will lead to the unloading of containers coming to it in neighboring ports, and the industrial importer will bear additional costs, to transport them by land or through transit trucks.

The Chambers of Industry demanded the cancellation of any costs that may arise from the strike, including floors and storage allowances, and the cancellation of a thousand dollars in exchange for reserving a container for export, in addition to any fines that may result from the breakdown of containers.

The Amman Chamber of Commerce described the strike as an "economic catastrophe," warning of the accumulation of about 16,000 containers ready for loading, which were inspected and paid customs duties, loaded with goods and foodstuffs, in addition to about 8,000 containers ready for loading, but transport and logistics companies were unable to transport the goods. To the owners of merchants and factories.

The halls of the House of Representatives witnessed the signing of a parliamentary memorandum calling for the Presidency of the Council to hold an oversight session to vote of confidence in the government of Jordanian Prime Minister Bishr Al-Khasawneh, due to its “inability to perform its duties towards the country and the citizen, and its arbitrariness in its decisions, at a time when the country is experiencing a real crisis, following the transportation strike.” year, as a result of the rise in fuel prices," according to the note.

Source: aljazeera

All news articles on 2022-12-19

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