Finance minister resigns as call to raise fuel prices fails
Finance Minister and Deputy Prime Minister Ziad Fariz resigned on 21 August, after the government rejected his calls for an increase in fuel prices. It is the third resignation by a member of the Jordanian cabinet in a month and comes ahead of parliamentary elections later this year.
Prime Minister Marouf al-Bakhit says his government will not increase fuel prices in 2007, despite high international oil prices.
'Al-Bakhit is a security man by background, not a business-orientated man,' says a senior business source in Amman, explaining why Fariz's recommendations were rejected. 'Anything to do with security or the stability of the local fabric is very important, and he did not want to create upheaval.'
Subsidies on fuels including diesel, kerosene, fuel oil and butane gas have weighed heavily on the government's growing budget deficit. But the pressure on prices is unlikely to disappear. 'It is expected that the price increase will definitely happen at the beginning of 2008,' says the source.
Fariz's resignation follows that of Water Minister Mohammed al-Alem and Health Minister Saad al-Kharabsheh on 29 July (MEED 3:8:07). But the resignations are not seen as a threat to overall government stability.
The move comes after King Abdullah dissolved parliament on 19 August, in preparation for elections that are expected to take place in November. The parliament's four-year-term formally ended in April.
Finance Minister and Deputy Prime Minister Ziad Fariz resigned on 21 August, after the government rejected his calls for an increase in fuel prices. It is the third resignation by a member of the Jordanian cabinet in a month and comes ahead of parliamentary elections later this year.
Prime Minister Marouf al-Bakhit says his government will not increase fuel prices in 2007, despite high international oil prices. 'Al-Bakhit is a security man by background, not a business-orientated man,' says a senior business source in Amman, explaining why Fariz's recommendations were rejected. 'Anything to do with security or the stability of the local fabric is very important, and he did not want to create upheaval.' Subsidies on fuels including diesel, kerosene, fuel oil and butane gas have weighed heavily on the government's growing budget deficit. But the pressure on prices is unlikely to disappear. 'It is expected that the price increase will definitely happen at the beginning of 2008,' says the source. Fariz's resignation follows that of Water Minister Mohammed al-Alem and Health Minister Saad al-Kharabsheh on 29 July (MEED 3:8:07). But the resignations are not seen as a threat to overall government stability. The move comes after King Abdullah dissolved parliament on 19 August, in preparation for elections that are expected to take place in November. The parliament's four-year-term formally ended in April.This content is only available to full MEED package subscribers (MEED magazine and MEED.com).
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