Jordan: Subsidy reductions confirmed
The Cabinet on Tuesday decided to remove subsidies on oil derivatives, raising the prices of four fuel products.
According to the decision, the price of 90-Ocatne gasoline will go up by 15 per cent from JD0.70 a litre to JD0.80 a litre.
Diesel and kerosene prices will increase, according to the new update to be effective as of Tuesday’s midnight, to JD0.685 per litre respectively instead of JD0.515 a litre, which means the prices of the two products will go up by 33 per cent.
Cooking gas saw the highest rise after the price of a gas cylinder went up from JD6.5 to JD10.
The decision to remove subsidies and sell petrol products at cost price meant to avoid further financial losses to the Treasury, according to the government, which estimated the cost of subsidy for this year at JD800 million.
The new subsidy regime aims to deliver direct cash support to low and medium-income Jordanians as each individual of a household that consists of six members or less and whose income is less than JD800 a month or JD10,000 a year will receive JD70 in compensation of the hike in prices.