The government continues, through its decision to freeze main petroleum product prices for the current month, its efforts to mitigate the repercussions of rising global energy prices on the Jordanian economy. This aims to reduce transport, production, and manufacturing costs while supporting the stability of goods and services prices—thereby safeguarding citizens' purchasing power and boosting the ability of productive and economic sectors to maintain operations.
اضافة اعلان
Economists and development experts affirmed today that the government's price freeze comes at a time when global energy markets are witnessing sharp volatility. This highlights the importance of government policies designed to absorb part of these price spikes, striking a balance between protecting citizens and economic sectors on one hand, and maintaining financial stability and national economic sustainability on the other, amid additional financial burdens borne by the treasury.
They stressed that fixing gasoline, diesel, and cooking gas prices helps curb inflationary pressures, as energy constitutes a major component of transport, production, and industrial costs. They noted that had global oil price hikes been fully passed on to the local market, prices of goods and services would have surged consecutively, leading to a further erosion of purchasing power and heightened pressure on economic activity.
Fouad Kreeshan, Professor of Economics at the University of Jordan, stated that economic decisions during crises represent a real test of government priorities. He noted that the Fuel Pricing Committee's decision reflects an attempt to balance two core objectives: protecting citizens from the rising cost of living while maintaining fiscal stability.
"From an economic standpoint, freezing gasoline, diesel, and gas prices helps limit inflationary pressures because petroleum products represent a primary input in transport, production, and manufacturing costs," Kreeshan said. "Had global oil price increases been passed on entirely to the domestic market, prices for goods and services would have spiraled, triggering further declines in consumer purchasing power and compounding pressure on economic activity."
He added that continued subsidies for household gas and select industrial uses—valued at 1.25 million JOD—come within this framework to help maintain production costs and support households.
"Conversely, this policy is not devoid of financial burdens. Accumulated cost differentials and losses reached approximately 212 million JOD, according to the Fuel Pricing Committee, which places added strain on public finances and limits the government's ability to direct resources toward other development priorities," Kreeshan noted.
He emphasized that a gradual approach to handling oil price volatility has succeeded in cushioning markets and consumers against shocks, though it simultaneously shifted a significant portion of the financial burden to the general budget. While this choice may be justified to maintain short-term social stability, it necessitates a long-term vision to ensure fiscal sustainability.
Kreeshan highlighted the importance of accelerating renewable energy projects, diversifying energy sources, and establishing financial buffers to navigate global oil price fluctuations—ensuring continued protection for citizens without allowing the cost of this protection to become a constraint on the economy's future development goals.
For his part, development expert and founder of the Innovation and Development Forum, Dr. Mohammad Al-Farajat, praised the government's decision to freeze fuel prices at this sensitive stage and its support for citizens and productive sectors amid extremely challenging regional and international economic conditions. These conditions were imposed by the fallout of the war between the United States and Iran, alongside accompanying disruptions to global trade and energy routes, particularly in the Strait of Hormuz and Bab al-Mandab.
"We recognize the scale of the financial burden borne by the public treasury as a result of fixing prices and absorbing subsidy differentials—a cost that is far from simple given economic challenges and budgetary pressures," Al-Farajat said. "However, this decision reflects the importance of balancing the protection of citizens' purchasing power with ensuring the operational continuity of various economic sectors."
The Fuel Pricing Committee held its regular meeting on Friday to announce the fuel prices applicable starting August 1.
The committee reviewed petroleum product prices during July compared to June, which revealed a noticeable increase in monthly average prices—particularly for diesel and kerosene—due to renewed political crisis in the region during the second half of the month, driving up monthly average prices for July over June levels.
Accordingly, under government directives, the committee decided to freeze the prices of major petroleum products for August at July levels as follows:
Octane 90 Gasoline: 1,000 fils/liter
Octane 95 Gasoline: 1,310 fils/liter
Diesel: 850 fils/liter
Kerosene: 550 fils/liter
Additionally, the price of a household cooking gas cylinder (12.5 kg) was fixed at 7 JOD, with continued support for liquefied petroleum gas (LPG) allocated to the industrial sector valued at 1.25 million JOD. The government is thus maintaining its approach—followed since the onset of security and military developments in the region—to absorb the impact of global fuel price increases, bearing financial costs totaling 212 million JOD to preserve domestic market price stability, protect citizens, support economic sectors, and shield them from additional burdens arising from global energy market volatility.
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