Gov’t struggles to balance IMF demands, public outcry over fuel prices

maan Transport Strike ma'an closed shops
Maan Governorate. (File photo: Jordan News)
AMMAN — Jordan's government is facing a difficult decision regarding setting fuel prices for February, says energy expert Amer Al-Shobaki. اضافة اعلان

The International Monetary Fund (IMF) has called for Jordan not to reduce the fixed tax value imposed on fuel, leaving the government with a lack of support in the budget to offset the tax and a potential public outcry if it increases prices.

As of February, it is expected that the government will raise the price of a liter of gasoline by 350 fils and raise the price of a liter of diesel by 250 fils. However, this decision may cause public unrest, warned Shobaki.

In December 2022, several provinces in the south organized strikes against rising fuel prices, causing tens of millions of dollars in losses and halting unloading at the Red Sea port of Aqaba.

To find a middle ground, the government may increase the price of gasoline and avoid raising the price of diesel, said Shobaki, without guarantees from either the public or the IMF.

 It should be noted that the government froze the tax on kerosene under Royal directives at the beginning of January and reduced the diesel tax from 16.5 piasters per liter to 13.5 piasters.

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