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