The importance of a gradual increase lies in the fact that it limits the transmission of the price shock all at once to the local market, and gives households and economic sectors an opportunity to adapt to changes, rather than facing sharp increases that could quickly reflect on transport, shipping, and production costs, and then extend to the prices of goods and services.
The October pricing figures reveal the scale of this equation; the actual cost of a liter of diesel reached about 1077 fils, compared to a local price of 900 fils, while the cost of a liter of 90-octane gasoline reached about 1112 fils, compared to 1050 fils for the consumer. As for kerosene, its actual cost reached about 1044 fils per liter, while it was sold locally at 550 fils, reflecting a large gap that public finances bear a portion of.
Here, an economic reality that cannot be ignored emerges; keeping local prices below actual costs eases the burden on the citizen, but it shifts part of the cost of the crisis to the general budget. Conversely, passing on global increases in full and quickly may increase living pressures, raise production and transport costs, and affect purchasing power, especially for low- and middle-income families.
In summary, rising oil prices impose delicate economic choices on Jordan, none of which are without cost regardless of the path followed. However, the success of the policy is not measured by the size of the increase or the amount of support alone, but by its ability to distribute burdens in a balanced manner, protect the citizen's purchasing power, ensure energy supply security, and maintain the sustainability of public finances. The equation is not between the citizen and the state, but between the cost of the crisis today and the economy's ability to overcome it tomorrow.
