Saudi Arabia has agreed to extend an oil grant for another year to Jordan, which lost cheap oil supplies from Iraq following last year's US-led war, a senior official said on Thursday.
Under the grant, the world's top producer provides Jordan with half its daily needs of crude oil, some 50,000 barrels per day, renewed from May 1, Ministry of Energy Secretary General Khaldoun Qteishat said.
Jordan pays Saudi Arabia for the remainder of its oil supply international market prices.
In April, Jordan increased the price of petrol and other petroleum products by an average of eight percent to ease a budget shortfall of 293 million dinars ($414 million) or 3.9 percent of gross domestic product (GDP).
The price rises were expected to save the government a projected 60 million dinars. Before the price hike, fuel subsidies cost 130 million dinars annually, based on old oil prices.
According to Qteishat, in April alone, the government paid around $100 million for crude oil.
Qteishat added Jordan was discussing the resumption of grants with the United Arab Emirates and Kuwait.
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