Jordan on Wednesday raised fuel prices by 11 per cent, in the first of what the government said would be a series of gradual increases as a result of the Iran war.
The announcement was immediately followed by increases in the price of many goods and services in the kingdom.
“Everything has started going up, from groceries to construction costs,” said Ahmad Al Eid, a machinery driver. At local markets, the price of tomatoes rose from $1.10 to $1.19 a kilo within 24 hours, while cucumbers rose from $1 to $1.10 a kilo.
Mr Al Eid, who owns a tractor, raised his ploughing fees from $18 to $21 an hour, while the cost to rent a bulldozer with a driver has increased from $40 to $49, he said.
“This is just the beginning,” said Mr Al Eid, who had stored 1,000 litres of diesel before the price jump. However, he can no longer replenish his stocks because the government last week banned the private storage of fuels to discourage a black market from emerging.
Fuel costs are a sensitive issue in Jordan, which imports most of its energy. Besides buses in its major cities, the kingdom has no public transport system. Many people own cars, although the average income is $4,600 a year, well below levels in surrounding countries including Lebanon and Iraq.
Most prices in Jordan, except for wheat and other subsidised staples, had already risen because of the rising cost of imports.
The war comes against the backdrop of a 15-year economic stagnation in Jordan, where authorities have put a tighter grip on domestic affairs since the Gaza war. Inflation rose to 2.2 per cent last year from 1.6 per cent in 2024, according to the International Monetary Fund.
A litre of petrol, as of Wednesday, costs $1.27 a litre. Diesel, the main fuel used in construction, transport and farming, has risen to $1.01. On the global market, Brent Crude was trading at $101 a barrel, about two per cent lower than the previous day but significantly higher than before the war began on February 28.
Jordan's state-owned refinery, a monopoly, announced on Wednesday that its fuel reserves would cover two months of consumption.
Abu Uday, a plumber who uses a diesel-powered vehicle for work, said that he would raise the fees for his services in a bid to cover the increased costs. “It will be difficult for my regular customers to accept the increase, so I will be starting with new ones,” he added.
The latest rise has taken fuel prices in Jordan close to those in Lebanon, which raised energy costs sharply in February, and twice this month. Fuel prices in both countries are significantly higher than in Syria.
Hatem Hussein, who owns a service taxi on the Amman-Damascus route, said his fare remains unchanged at $50 a passenger because he and other drivers usually fill up in Syria, where a litre of petrol costs 80 cents.
“The economic situation in the region does not allow an increase in fares anyway,” he added.
Fuel is taxed at 45 per cent in Jordan. However, to help consumers cope, the tax has not been extended to the new price increases, the government said. Subsidies were also increased on wheat to help keep the price of bread steady.
