Arab states hit by rising oil prices

Oil has risen to yet another record high – just shy of $121 dollars a barrel.

One knock on effect is that some Arab countries are removing state subsidies, which are costing billions of dollars a year.

Jordan removed fuel subsidies in February and, since then, oil prices have shot up by 82 per cent.

Syria too is cutting subsidies, trying to soften the blow with a 25% hike in wages.

And now Egypt has announced a 40 to 50 percent hike in fuel prices – just two days after saying wages would go up by a third.

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