Jordan announced on Tuesday it would raise fuel prices by up to 53 percent, as the country faces a budget deficit of around $5 billion (3.9 billion euros), state television said.
"Trade and Industry Minister Hatem al-Halwani decided to adjust the price of fuel, raising the cost of household gas from 6.5 dinars to 10 dinars per cylinder," a 53 percent rise, state TV said.
"A litre of octane petrol (will rise) from 0.71 dinars to 0.80 dinars," it added.
Prime Minister Abdullah al-Mansur told the television "the total budget deficit for 2012 is 3.5 billion dinars (around $5 billion)," adding that "the financial situation in the country has been greatly affected by the Arab Spring... The economic situation is very precarious."
"The decision to re-examine fuel subsidies needed to be taken two years ago," Mansur said, adding that the government would subsidise low-income families to help with the higher prices.
Meanwhile, around 200 people demonstrated in Amman against the price hike, chanting "Mansur out," and holding banners that read "revolution of the hungry."
Jordan, which imports 95 percent of its energy needs, is struggling to find alternatives to unstable Egyptian gas supplies, which normally cover 80 percent of the kingdom's power production.
Since 2011, the pipeline supplying gas from Egypt to both Israel and Jordan has been attacked 14 times.
With desert covering 92 percent of its territory, Jordan is one of the world's 10 driest countries and wants to use atomic energy to fire desalination plants to overcome its dire water shortage.