Minister of Trade and Industry Shabib Ammari increased the price of premium petrol by around 25 per cent, state-run Petra news agency reported, adding that the prices of kerosene, fuel oil, diesel and other derivatives have been also hiked.

 

The government also decided to increase electricity tariffs for banks and hotels as well as mining and telecommunication companies, Petra said without elaborating.

 

Prime Minister Fayez Tarawneh, who won a vote of confidence in parliament on Thursday, has said the hikes were part of austerity measures, expected to bring in $425 million to state coffers.

 

He has warned the country's overall debt could reach $24.6 billion by the end of this year.

 

Opposition Islamists have warned the measures are "very dangerous" and likely to stoke political instability.

 

"We reject imposing more and more burdens on Jordanians," said the powerful Islamic Action Front, the political arm of Jordan's Muslim Brotherhood.

 

"The government instead should restore stolen money and find an effective way to cut its own spending."

 

More than 1,000 demonstrators marked Jordan's 1949 independence from British rule on Friday rejecting government plans to hike commodity prices and taxes.

 

Jordan has witnessed regular street protests since January last year demanding sweeping reforms and tough action against corruption.