Geopolitical developments in the region pose direct challenges to energy-importing economies, particularly Jordan. Rising oil and gas prices, along with supply volatility, quickly translate into higher production costs, a widening trade deficit, and increased inflation. In this context, responding to the shock with short-term reactions alone is insufficient. What is needed is a comprehensive framework based on a phased response that combines immediate containment with structural reform.

 

In the short term, priority should focus on absorbing the shock and mitigating its direct impact on citizens and productive sectors. This can be achieved through targeted support packages provided by the government instead of broad subsidies, ensuring that the most affected groups receive relief without placing unsustainable pressure on public finances. Temporary reductions in fuel taxes and fees also represent an effective tool to limit the transmission of global price increases to the domestic market. In addition, the strategic fuel reserve plays an important role in smoothing price volatility, while freezing or postponing electricity tariff adjustments can provide the economy with a degree of stability. Equally important are market monitoring measures to prevent monopolistic practices, alongside rapid campaigns to promote energy conservation.

 

In the medium term, the challenge shifts from crisis management to reducing the economy’s sensitivity to external shocks. Here, accelerating renewable energy projects becomes essential, especially given Jordan’s strong potential in solar and wind energy. Expanding the use of liquefied natural gas through the Aqaba terminal also helps diversify supply sources and reduce reliance on a single provider. At the same time, improving energy efficiency becomes a key priority across both industrial sectors and public and private buildings, lowering overall energy demand. Supporting and developing public transportation is another important measure to reduce fuel consumption, alongside providing incentives for investment in the energy sector and encouraging industries to adopt more energy-efficient technologies.

 

In the long term, the objective goes beyond adaptation toward achieving sustainable energy security. This requires a comprehensive restructuring of the national energy mix, increasing the share of domestic sources, particularly renewables, in electricity generation. Investment in energy storage technologies, such as batteries, will become crucial to ensuring supply stability as renewable capacity expands. Moreover, regional electricity interconnection presents a strategic opportunity to enhance supply security and reduce costs. Developing infrastructure for electric transport is equally important to reduce dependence on imported fuels. Over the longer horizon, investment in research and development in the energy sector, along with a transition toward a low-carbon economy, will strengthen Jordan’s resilience to future shocks.

 

Energy shocks expose the fragility of heavy reliance on external sources, but they also open a window for rethinking economic and energy policies. Effective response to such shocks is not limited to temporary measures; it requires an integrated vision that begins with protection, moves through adaptation, and culminates in transformation. The faster Jordan advances along this path, the better it will be able to reduce the cost of future crises and turn challenges into opportunities for sustainable growth.