World Monetary Organization Calls on Jordan to Reform Energy Subsidy Policy

Recently, a report released by the International Monetary Organization shows that Jordan’s existing energy subsidy policy has not really benefited ordinary people, especially the low- and middle-income groups who need subsidies most. The report shows that 20% of the high-income Jordanian people enjoy a 40% energy subsidy benefit, while 20% of the poorest people in Jordan don’t even enjoy an energy subsidy benefit of 7%. The Jordanian government spends 6 percent of its total budget on energy subsidies, which is equivalent to 2 percent of GDP. This heavy financial burden is still ultimately borne by the Jordanian people. Therefore, reforming the existing energy subsidy policy and truly benefiting low- and middle-income families is an urgent issue facing the Jordanian government.