(MENAFN) Jordan government decided to increase lower grade gasoline (Octane 90) price by 12.9 percent, the first rise in lower grade gasoline prices at the pump since street protests early last year, Reuters reported.
The move comes two weeks after a 20 percent hike in prices of premium gasoline as part of IMF-guided austerity steps to ease a worsening budget deficit.
Two weeks ago, electricity tariffs were also substantially increased for major industrial and service sectors of the economy, including banks and hotels.
The government had also hiked prices of bulk LPG, heavy fuel oil for industry, jet fuel and bunker fuels in a move economists say will add to inflationary pressures in the country of seven million people and hurt its exports competitiveness by increasing costs.
The government has long been mindful of public discontent that exploded into street clashes in the depressed south of the country after two gasoline price hikes in 1989 and 1996 but has been forced to take measures to stem a widening budget deficit that threatens to worsen the country's economic status.