Jordan prime minister cites slump in fuel-price raise

— Jordan’s prime minister Friday defended his decision to raise prices for subsidized fuel, four days after the move sparked unrest that left one person dead and scores wounded.

Protests across the country, which featured rare calls for deposing the king, turned unusually violent last week, threatening stability in Jordan, a close U.S. ally. One person was killed and 75 others, including 58 policemen, wereinjured in the violence.

Abdullah Ensour said shaky state finances forced him to raise prices for heating and cooking gas by 54 percent, and some oil derivatives by up to 28 percent. “It’s a sound move meant to save the Jordanian economy from further deterioration,” he told reporters.

He said that when he took office last month, he found that foreign-currency reserves this year had shrunk by half to $10 billion, while unemployment and poverty stoodat alarming levels. Adding to the trouble were rising costs of fuels themselves, losses incurred by the subsidy program, a shortfall of donations from oil-producing Persian Gulf Arabs and disruptions in the flow of cheap Egyptian gas used for generating electricity. As a result, the budget deficit swelled to a record high $3 billion and debts grew by 20 percent this year, he said.

No protests took place Saturday, but unions said they may hold a strike today.

Front Section, Pages 15 on 11/18/2012

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