Economic Analyst: Government Imposes 50% Tax on Petroleum Products but Can Exempt Citizens

Economic analyst Foumi Al-Kettout stated in an interview with Radio Al-Balad that the sharp rise in global oil prices following the war launched by Israel and the United States on Iran poses a serious challenge to Jordan’s economy, but the government has the ability to relieve citizens from the impact of these increases.

Al-Kettout explained that the ongoing conflict has caused oil prices to exceed $100 per barrel, placing a heavy burden on all economic sectors, including electricity, transport, industry, and tourism. He said, "The rise in fuel prices affects every aspect of life and is a cornerstone for all economic sectors. Any government intervention is an investment to preserve the overall economy, not merely a cost to the treasury."

He highlighted that the government currently imposes a tax of around 50% on various types of gasoline, with even higher rates on diesel and kerosene, but it has the option to reduce or temporarily eliminate these taxes to ease the burden on citizens and critical economic sectors. Al-Kettout added, "Taxes should be lowered to zero if necessary to ensure the continuity of economic life for citizens during this brief period of price increases, which would not permanently strain the treasury given the current tax structure."

Al-Kettout emphasized that fuel prices are reviewed monthly, allowing the government to take measures that minimize the impact on citizens without compromising financial stability. Such actions help maintain purchasing power and mitigate the effects of energy cost increases on industry, services, and tourism.

He concluded by stating that any reduction in fuel taxes is not merely a financial loss but a strategic step to protect the national economy from worsening conditions, especially under the current regional conflict.