AMMAN, August 1 (Petra) –The government continues its efforts to
mitigate the domestic impact of soaring global energy prices by
freezing the primary prices of oil derivatives for the current month.
The measure aims to curb transportation, production, and industrial
costs while stabilizing commodity and service prices, ultimately
safeguarding citizens’ purchasing power and ensuring the
uninterrupted activity of key economic and productive sectors.

Economists and development experts interviewed by the Jordan News
Agency (Petra) emphasized that the decision to maintain fuel price
caps arrives amid severe fluctuations in international energy
markets. They highlighted the critical role of government
intervention in absorbing external price hikes, balancing the
protection of consumers and industries with the imperatives of fiscal
stability and public treasury sustainability.

Experts noted that capping gasoline, diesel, and kerosene prices
helps suppress inflationary pressures, as petroleum derivatives
constitute a foundational element in transport and industrial cost
structures. Fully passing global oil spikes onto the domestic market
would have triggered cascading price increases across goods and
services, eroding citizens’ purchasing power and intensifying burdens
on economic sectors.

University of Jordan economics professor Fouad Krishan stated that
economic decision-making during crisis periods serves as a true test
of governmental priorities. He noted that the Fuel Pricing
Committee’s decision reflects a strategic balance between
safeguarding living standards and preserving public financial
stability.

Krishan explained that stabilizing fuel prices mitigates inflation by
shielding industrial and transportation supply chains from external
shocks, while noting that ongoing state subsidies for domestic and
industrial liquefied petroleum gas–totaling 1.25 million
dinars–help preserve production inputs and support families.

However, Krishan acknowledged that the policy carries significant
fiscal burdens, with accumulated cost differentials and treasury
losses reaching 212 million dinars according to pricing committee
disclosures. While this short-term measure successfully cushions
markets, he stressed the necessity of long-term strategies, including
accelerating renewable energy projects, diversifying energy sources,
and establishing financial buffers to handle global volatility
without compromising future developmental goals.

Dr. Mohammed Al-Farajat, a development specialist and founder of the
Innovation and Development Forum, commended the government’s decision
during a highly sensitive regional and international phase marked by
trade and energy disruptions stemming from geopolitical tensions. He
underscored that despite the clear strain on the public budget, the
decision demonstrates a vital commitment to protecting consumer
purchasing power and maintaining business continuity.

The Fuel Pricing Committee convened its periodic session to review
July market averages against June benchmarks, which revealed sharp
upward trajectories in global diesel and kerosene prices driven by
regional political developments during the second half of the month.

Under government direction, the committee resolved to freeze
derivative prices for August at July levels, establishing rates at
1,000 fils per liter for unleaded gasoline octane 90, 1,310 fils per
liter for octane 95, 850 fils per liter for diesel, and 550 fils per
liter for kerosene.

Additionally, the household gas cylinder (12.5 kilograms) remains
capped at 7 dinars, alongside continued industrial LPG subsidization
valued at 1.25 million dinars. These measures form part of an ongoing
policy framework adopted since the onset of regional security
tensions to absorb global price shocks, absorbing 212 million dinars
in treasury burdens to shield the domestic market.

//Petra// AA