An economist warns against continuing to link the energy sector to the mood of officials
Amman Today
publish date 2023-05-20 11:48:38
Amman – Raed Sbeih
Experts and observers appreciated the announcement of the Energy Regulatory Commission in Jordan to open the door for those wishing to invest in the activities of marketing and distributing oil derivatives inside the Kingdom, as it will have a positive impact on this sector. In improving the entire economic system and providing more quality and lower cost services at the same time.
between competition and moodiness
In his statements to Al-Bawsala, economic expert Hussam Ayesh warned of the danger of continuing to link the energy sector in Jordan to what he called “the mood of the Jordanian official who wants to maximize revenues without paying attention to the negative economic and social effects of that,” stressing the need to “liberate the energy sector” and open the way for it. For broader competition, because this will be one of the most important inputs to a better economic process than what is currently in place.
Ayesh said that the energy sector is a strategic sector in Jordan and the world, especially when we talk about Jordan as a pure investor in energy from oil and gas, and thus it has become one of the biggest influences in the economic process in Jordan, and the more competition within this sector increases, the better its performance quality on the one hand, and perhaps Reducing costs on the one hand, and allowing the entry of new investors from a third party, and thus helped distribute the role of the energy sector in the economy and society and provided additional job opportunities, not to mention that the energy sector is one of the costly sectors in terms of economic activities, and in terms of people’s spending and movement.
He added, however, by saying: On this basis, the approach to the energy sector for the government is supposed to be not only on the basis of taxes that we earn from this sector and on the basis of owning some investments for specific parties here and there, as happens, but rather that it is taken into account that this sector is part of a larger economic system that operates To expand economic activity on the one hand, and to increase economic growth on the other hand, and to be one of the additional employment opportunities on the third hand.
Climate changes are an important factor
Ayesh stressed that we must take into account that climate changes have begun to affect even the way the world deals with the energy sector, as there are restrictions that we may feel from the consumption and use of this sector, especially on the base of carbon emissions, and the agreement on the years 2050 or 2060, to be years It has zero carbon emissions.
The economist continued by saying: This means that there are major transformations in the energy sector that require the introduction of new investors, new technologies and new ideas to the market in terms of managing this sector, including marketing ideas and how to price these derivatives to reach a price commensurate with people’s income.
Ayesh added: It is not permissible, as there is a “big problem” that we always have pricing in Jordan, especially with regard to the multiple and various pricing tools, and sometimes it becomes of a very expensive nature when we reach the final price based on it, and this is supposed to be reviewed, and it is not permissible for us to leave the sector Energy – and I am giving him an example here – is only due to the mood of the official in the state because he wants to maximize revenues on the one hand at the expense of economic activity and at the expense of social movement and even the expected growth in the future in order to improve the level and rates of people’s income.
Activation within the entire economic system
Ayesh added, “That is why we say that the energy sector does not work alone, but rather is part of a system. Unfortunately, the state still deals with it as a separate sector, and its procedures and policies are regulated accordingly.”
And he stressed that diversifying the energy sector, developing it, increasing competition in it, and opening its horizons to investors and to new experiences, is also studying how we can reduce the costs of this sector, especially since genius is not in increasing the cost of this sector, because anyone can do that, but genius It lies in how to reduce costs, while maintaining revenue.
Ayesh pointed out that “this is what governments and energy sector regulators and others should work on, but the traditional methods of managing the energy sector and strategic sectors in which global financial procedures and policies change, in fact, repeated traditional strategies, tools and policies that are repeated again and again do not work.” other.”
The economist concluded in his statements to Al-Bawsala: “Therefore, I believe that if the energy sector is liberalized and if the field is opened for wider competition, it will be one of the most important inputs for a better economic process than what is currently in place.”
An open market investment
The Energy and Minerals Regulatory Commission said, on Saturday, that the door is open to those wishing to invest in the activities of marketing and distributing oil derivatives inside the Kingdom.
In a statement issued by it, it confirmed that any request submitted will be dealt with in accordance with the legislation governing the work of the sector, and that the activity of marketing and distributing oil derivatives is an open activity in accordance with the provisions of the Energy and Minerals Regulatory Authority Law No. (8) of 2019 and the Petroleum Derivatives Law No. (11) of 2018. And Regulation for Licensing Activities Related to the Petroleum Derivatives Sector No. (121) of 2019 and its amendments.
The Chairman of the Board of Commissioners of the Authority, Ziyad Al-Saaida, said in a press statement that the announcement comes as an affirmation of the government’s policy to open the local oil market to competition, by licensing new marketing companies to distribute oil derivatives inside the Kingdom, in accordance with the comprehensive strategy for the energy sector and the oil sector restructuring plan, and to ensure the provision of services in an efficient manner. Safe, stable and sustainable.
Al-Saaida indicated that the authority renewed on the first of May the licenses granted to the three companies working in the field of marketing petroleum derivatives (Jordanian Petroleum Products Marketing Company / Jopetrol, the Jordanian Modern Oil and Fuel Services Company / Manaseer, and Total Energy Marketing Jordan Company) for a period of (10) Years.
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