Factories could close if power and fuel surcharges are not lowered, says Jordan Chamber of Industry
Increases in power tariffs and fuel surcharges by Jordan’s government is putting the country’s industrial base at risk.
The Jordan Chamber of Industry (JCI) has said that a 16 per cent hike in power prices for companies using more than 750kW, as well as heavy fuel oil prices being increased to $712 per tonne could cause many factories in the kingdom to close.
Nazzal Armouti, deputy chairman of the JCI, told the Jordan Times that the government was making the industry sector pay for the mistakes it itself had made over the past few years.
The executive also said that the extra revenues gained from the price increases would be lost due to lower activity in the manufacturing sector.
Around 90 per cent of Jordan’s $7bn exports are estimated to come from the industry sector.