AMMAN - The government announced Tuesday that there would be no hike in fuel prices despite the rise in international oil prices and the subsequent budget deficit.
The decision was announced by Prime Minister Marouf Bakhit at a press conference during which he also told reporters he recommended that King Abdullah accept the resignation of Deputy Prime Minister and Minister of Finance Ziad Fariz.
Bakhit also announced that parliamentary elections will be held on November 20.
The decision to keep the prices of fuel derivatives at their present levels followed several local media reports saying the government would increase prices to tackle a growing budget deficit after it found itself in a position where it had no choice but to break earlier pledges not to impose the hikes.
The 2007 budget deficit was earlier forecast to reach JD385 million. But with the price of oil in the international market jumping to over $70 per barrel, the deficit expected till the end of the year rises to JD710 million.
Bakhit said away from numbers and calculations, the King’s directives are clear: to ease the burdens shouldered by citizens and relieve people’s economic hardships.
The premier did not link the finance minister’s resignation to the fuel prices decision. But an official source, speaking on condition of anonymity, told The Jordan Times that Fariz, who was said to be pressing for price rises to save the state’s finances, resigned on the backdrop of the Cabinet’s decision rejecting his recommendations.
The government is expected to fully liberalise the energy sector next year, with the end of a 50-year monopoly of the Jordan Petroleum Refinery Company.
Since the US-led war on Iraq in 2003, authorities imposed fuel price hikes four times, three of which took place between July 2005 and April 2006.
The decision to set the date for legislative elections came two days after the King issued two Royal Decrees dissolving the 14th Parliament and ordering legislative elections.
