Dubai: Jordan on Wednesday approved a 160 million dinar ($225 million) package to reduce prices of commodities and create jobs in an attempt to ease the burden on the country's poor and to face a rising popular discontent.
The new measures came after Jordan's King Abdullah II ordered immediate steps to help the poor last Monday, saying that basic goods should be available at the lowest possible prices for citizens.
Speaking at a news conference, Deputy Premier Ayman Safadi said the government will reduce prices of domestic fuel, gasoline and kerosene by six percent and inject 20 million dinars ($28 million) into the country's cooperative stores to help reduce the prices of basic commodities.
He added that another 20 million dinars will be allocated to fight poverty and set up development projects in the underprivileged areas, while jobs will be created in several ministries, including health, education and development.
"These measures will cost the budget 120 million dinars," Safadi said, adding that the measures aim at helping "minimise the impact of economic problems on Jordanians... in light of soaring international prices."
Jordan lifted subsidies on fuel and gasoline a decade ago as part of free-market reforms, but still imposes taxes, considered the highest in the region, and gasoline prices have recently risen in line with pressure on oil prices in the global market.
The latest steps also include reducing the cost of sugar and rice sold in state-run supermarkets by 10 per cent and enforcing caps on food price, a cabinet statement said.
The move by the Jordanian government is believed to have been spurred after the deadly riots caused by joblessness and poor prospects for youths in Algeria and Tunisia, and especially after popular Jordanian labour activist Mohammed Sneid called for a nationwide protest after coming Friday prayer.
Mohammad Sneid's call was supported by several left-leaning, labour and tribal opposition groups. The rise is against fuel and food prices, along with soaring inflation, which rose by 1.5 per cent to 6.1 per cent last month.
All this is triggered by high rates of unemployment and poverty among a population of 6 million, by which the majority is under the age of 25.
