Jordan faces oil price bind

The sharp rise in oil prices over the past year has provided a massive economic boost for many Arab states. In Jordan, however, it has forced the government into a delicate balancing act in order to preserve political and fiscal stability.

Unlike most of its neighbours, Jordan does not sit on vast oil and gas riches. All the same, the kingdom has for many years offered citizens generous subsidies to buy cheap petrol and heating fuel. Yet with oil climbing towards


Hamad Kasasbeh, finance minister, told the Financial Times: