>Does anyone else think there’s something wrong with the gas prices in Jordan picture?

>So normally don’t think too much about this stuff. Gas prices have gone up and I whine (like everyone else) about how high they are. But, really, I don’t put much though into it. And then, something triggers me. In this case, it was a conversation on a message board about gas prices in the US. So, for those here who don’t know, gas prices n the US vary WIDELY. They vary in the same town (people drive around town the get the best price), they vary on the same street, but mostly they vary by locale. So, in Iowa, which is the middle of absolutely nowhere, gas is hugely expensive. The reasoning behind this is that gas has to be trucked in from a coast ad it’s a LONG way from the coast. As a result, when we lived there, we paid more for gas than people who lived in such high-cost mavens as LA and New York City.

On this board, the ladies were complaining about how high gas prices were in their locations. So, I decided to see how we were faring against the US. After doing the gallons/liters conversion and then the dollars/dinars conversation, guess what I found? Jordan’s gas prices were as high as the really high-cost areas. So then I started to think… (I assure you, this is dangerous even in the best of times). In Jordan, we have what should be the benefit of being right next door to the major oil producing nations. So, transport charges shouldn’t be very high, right? I mean, given the number of UAE cars in town each summer, clearly it’s dirt cheap to ship stuff…

So, the cost isn’t in getting the oil to Jordan. Is it in the production from crude to gasoline? Perhaps, but at these prices, Jordan’s refinery should be posting HUGE profits, beyond even those touted by the large American companies making billions per quarter on gas. It’s seems to me that something’s broken in the system. If the gas tax is that high, where is all of the money going? Seems like that kind would be able to bring Jordan’s finances into great shape. After all, the government is removing subsidies, but does that mean they’re increasing taxes? This is just one woman’s curiosity, but how is it that we pay as much (if not more) for gasoline than people half-way around the world? Any thoughts?

Happy curiosity!

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13 thoughts on “>Does anyone else think there’s something wrong with the gas prices in Jordan picture?

  1. >well there are a whole bunch of reasons why gas prices are on par with the highest prices of the northwest.one reason is that the high gas prices are subsidizing the cost of natural gas and kerosene. that takes the lions share of the extra cost. then we have the refinery trying to rake in profits before full privatisation.and the least of all, is that the production cost at the refinery are more likely to be higher since it hasn’t been maintain or upgrade and naturally the production costs go up with time, but that is the least important one i think. now the sweet tooth in all of this is that we don’t know the first quarter profits of the refinery or the gov’t. now that would be a nice number.

  2. >Nicole, wouldn’t we all? Bambam, interesting viewpoint, maybe that’s true (but didn’t they just remove subsidies from both types of fuel you mentioned?!). Jad, are you trying to get me in trouble???! I’m asking an honest question that I hope may provoke thought and questions… Honestly, I have no idea how any of this works here (and not much more in the US, except that the gas price in the US varies widely based upon federal, state, city, and local taxes)…

  3. >Heh-heh, MommaBean, pushing freedom of the press, eh?I used to say that if Americans had to pay for gas what Europeans do, the Christians would start screaming: “The Tribulation is upon us!”. the current price of gas in Chicago is what I was paying in Europe 20 years ago. If my memory serves me correctly :)I would imagine (as dangerous as you thinking!)it has quite a bit to do with taxes and the subsidies Bam mentioned.

  4. >Alright Jad, you’re off the hook, then. And Kinz, I would have known it was you without the confession :). It’s a good thing NONE of us is paying European rates for gas (or is it? maybe I’d stay a LOT thinner that way).

  5. >Yikes, Mr. Anon! I shudder to think that my poor little blog would have THAT much influence on anyone in power. And, if it did, I would hope the influence would go the other way!

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