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Retired Jordanian Ali Khair shops at a supermarket chain subsidised by the military for his family of five. In the past week, its prices for basic goods have risen sharply while remaining below retail supermarket levels.
“Everything went up and the selections diminished,” said Mr Khair, who was a corporal in the infantry.
Corn oil has been the hardest hit, with 10 litres now costing $17 compared with $10 before the war started on February 28. Other goods, such as a bag of rice, went up from $1 to $3. Buying several bags of staple food has been prohibited to limit hoarding.
Jordan, one of the most stable Middle East countries in the past five decades, is starting to take hits to its economy from the Iran war, although Iranian missile and drone attacks have caused no visible damage.
The government has been waiving some taxes and increasing subsidies to try to cushion the impact. However, Jordan imports most of what it consumes, especially energy. Average incomes, at $4,600, are low compared to the Gulf, and even other neighbouring countries such as Lebanon and Iraq. The economy, which has been stagnant for the past 15 years, partially relies on US aid. The American assistance includes an annual $842 million cash injection into the budget.
On Monday, Jordanian Prime Minister Jaafar Hassan ordered government departments and public bodies to “tighten spending”, days after the authorities said that costs of electricity production have increased by $140 million because of a halt in Israeli gas supplies. However, most of the $18 billion budget goes toward salaries and debt servicing.
At a meeting in Jeddah, King Abdullah II discussed with Saudi Arabia's Crown Prince Mohammed bin Salman and Sheikh Tamim, Emir of Qatar “the need to strengthen joint Arab action to deal with the economic burden of the war”, according to the Royal Palace.
Mr Al Khair has a military pension of $420 a month and makes a $100 to $200 more a month doing other jobs, sometimes travelling in from his home area of Jerash, a farming region north of Amman, to the capital, in his old Toyota pickup. However, the government, which sets fuel prices at the beginning of each month, has signalled the likelihood of significant fuel price increases on April 1.
“When diesel goes up, the price of every local product will,” said Mr Khair, who pays 91 cents a litre.
Prices of American fertiliser, which is preferred by farmers, have risen from $47 a bag to $59, while spare parts have risen by an average of 20 per cent. “I am not worried about rising costs as much as the possibility of having no stock because of supply cuts,” said a dealer of Varta automotive batteries in Amman.
In an unusual announcement, intended to show that imports are still flowing, the government said that four ships docked on Monday at Jordan’s port of Aqaba, carrying wheat, sugar, petrol and gas.
Ahmad Al Neimat, spokesman for the kingdom’s National Crisis and Security Centre, repeated official calls on people in the kingdom not to stockpile supplies, calling these moves unjustified.
“The situation is under control,” Mr Al Neimat said.
Among the measures the state took to try to preserve jobs is to cover the cost of borrowing for hotels and restaurants if their owners take out loans to keep operating, amid the tourism sector downturn caused by the Iran war.
Khader Salem, a Jordanian travel agent, told The National the foreign tourism flows have been “decimated”. He pointed out the cancellations and halt of most international flights to Jordan, except those by Turkish Airlines, Lebanon's Middle East Airlines, Romania's Tarom Airlines and Oman Air. Meanwhile, several Gulf budget airlines have resumed flights.
The authorities have kept the Amman airport open despite Iranian air attacks on the kingdom. “They are on alert 24/7,” said Mr Salem, adding that ticket prices to Beirut have doubled, and rose by 30 per cent to European cities.
Iran fired at least 262 missiles and drones at “vital sites” in Jordan since February 28, according to the military. Its data show that around 90 per cent of the projectiles have been intercepted.
There remain Jordanian customers who travel abroad for business. “They go and come back almost immediately,” Mr Salem said.
