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FINANCIAL NEWS
Jordan’s planned fuel price hikes stopped by King
03 Sep 2012
(MENAFN) Jordan’s King Abdullah has ordered the government to freeze a fresh hike in the price of the low-grade fuel (Octane 90), Reuters reported.
The royal decree came a day after the government decided to increase the price of the low-grade gas by 10 percent under IMF-guided measures to cut subsidies and ease budget strains.
Octane 90 is used by the poor in the aid-dependent Kingdom, so the price hike, sparked several scattered street protests by the government’s tribal and Islamist opponents.
Also, 89 of the 120 deputies in the country’s lower house of parliament signed a petition urging the king to dismiss Prime Minister Fayez Tarawneh over the move.
Jordanians went out in street protests early last year, inspired by the Arab Spring, forcing the authorities to expand social spending and freeze fuel price hikes, including gasoline.
Jordanian officials say the rise in gasoline prices will help Jordan meet an IMF-backed budget deficit target of around 5 percent of GDP after grants that traditionally cover budget shortfalls.
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