Jordan Car Prices Surge as Hormuz Crisis Deepens — Electric Vehicles Gain Ground

Jordan Car Prices Surge as Hormuz Crisis Deepens — Electric Vehicles Gain Ground

AlstonMotors.com | March 27, 2026

Table of Contents

  • Overview
  • The Hormuz Shock and Jordan’s Exposure
  • Fuel and Car Prices Rising in Jordan
  • Why EVs Benefit in This Environment
  • Chinese EVs at the Centre of Jordan’s EV Market
  • Outlook
  • Sources

Overview

Jordan is facing its sharpest automotive cost shock in years. Car prices surged this week following the ongoing closure of the Strait of Hormuz, which cut off roughly 20 percent of the world’s seaborne oil supply after US-Israeli military strikes on Iran began on February 28, 2026. For Jordan — a country that imports virtually all of its crude oil and already ranked as the Middle East’s leading electric vehicle market — the crisis is accelerating an already strong shift toward battery-powered cars, with affordable Chinese EV models at the centre of that transition.

The Hormuz Shock and Jordan’s Exposure

The closure of the Strait of Hormuz — triggered by Iran’s response to the US-Israeli strikes — sent Brent crude oil prices above $100 per barrel by March 8, peaking at $126 per barrel, the highest in four years, according to Wikipedia’s documented timeline of the crisis. The International Energy Agency described the disruption as the largest supply shock in the history of the global oil market, with flows through the strait collapsing from 20 million barrels per day to near zero.

Jordan is among the countries most exposed to this shock. A Centre for Global Development analysis cited by Al Jazeera ranked Jordan alongside Pakistan, Bangladesh, Egypt, and Ethiopia as among the highest-risk nations, due to heavy dependence on fuel imports, high public debt, and limited foreign exchange reserves. Jordan imports most of its crude from Saudi Arabia and processes it through a single state-owned refinery, with 30 to 35 percent of the pump price going directly to the government as tax. This structure means fuel price increases pass through to consumers with little cushion.

Fuel and Car Prices Rising in Jordan

Jordan’s fuel prices for March 2026 rose, with gasoline and diesel prices both climbing while kerosene was held fixed, according to Dooz, Jordan’s leading automotive news platform. A separate Dooz report published today stated that car prices in Jordan have surged directly in response to Strait of Hormuz tensions, as import costs, insurance premiums, and logistics expenses across the region escalate.

Jordan’s dealers association was also quoted this week confirming that inventory and pricing pressure is real, with sourcing from Gulf states disrupted and shipping route diversions adding cost. The Dooz platform noted that the country’s automotive market is navigating significant uncertainty, with both new and used car prices affected.

This is not the first time Jordan has lived through a fuel-driven automotive shock. In 2022, following Russia’s invasion of Ukraine, Jordan saw petrol hit $1.39 per litre — the fourth consecutive monthly increase — and electric vehicle imports in the first half of that year alone surpassed the total for all of 2021. The pattern is repeating, but with oil now at more than $100 per barrel and no clear timetable for the Hormuz strait to fully reopen, the pressure on Jordanian consumers is more severe and potentially longer-lasting.

Why EVs Benefit in This Environment

The economic case for EVs in Jordan strengthens directly as petrol prices rise. A Jordanian motorist driving a petrol or diesel car typically spends 150 to 200 Jordanian dinars ($211–$280) per month on fuel. The equivalent monthly cost in a battery electric vehicle is around 30 to 40 dinars, according to reported figures from Jordanian dealerships. At current pump prices — which are rising — that gap widens further.

Wood Mackenzie director of energy transition research David Brown said in a report published this week that the Hormuz closure could be a “game-changer” for EVs globally, and that in countries with access to low-cost Chinese electric vehicles, the competitive advantage over petrol cars would arrive even sooner. The South China Morning Post cited the report, noting that Brent crude above $100 per barrel makes EV total cost of ownership calculations decisively favourable in import-dependent markets like Jordan.

Global think tank Ember found that the world’s existing EV fleet already avoids 1.7 million barrels of oil consumption per day — roughly 70 percent of what Iran was exporting through the strait before the crisis began. Its principal Daan Walter stated this week that “oil volatility means EVs are a common-sense choice for countries wishing to insulate themselves from future shocks.”

Chinese EVs at the Centre of Jordan’s EV Market

Jordan already held the highest share of electric vehicle sales in the Middle East in 2024, with over 45 percent of the region’s total EV sales, according to the International Energy Agency data reported by Dooz. The kingdom had more than 120,000 EVs on its roads by 2025, with 77 percent registered in Amman. Chinese-made models drove that growth: Changan’s E-Star, Eado EV, and SL03 became among the most common EVs on Jordanian roads, while BYD, Dongfeng, and MG also established strong footholds.

Jordan’s government directly enabled this through a graduated special tax fixed at 27 percent for electric vehicles across all categories — replacing a previous system that could reach 55 percent — alongside customs duty benefits that made Chinese EVs significantly cheaper than equivalent petrol models. By contrast, petrol vehicles carry a total tax burden of 51 percent and hybrids 39 percent, following reforms implemented in June 2025, as reported by Dooz.

Chinese EV manufacturers are positioned as the primary beneficiaries of the current oil price shock in markets like Jordan. As Automotive News reported this week, early signs from Asian showrooms show BYD and other Chinese brands receiving a flood of new buyers, with customers explicitly replacing petrol vehicles due to fuel cost surges. One Manila dealership booked a full month’s worth of orders in two weeks; analysts expect similar patterns to emerge across other oil-import-dependent markets, including Jordan.

Outlook

Jordan’s combination of high fuel import dependence, an already established EV infrastructure, lower EV tax rates, and a population acutely sensitive to petrol prices puts it in a strong position to accelerate EV adoption further as the Hormuz crisis continues. The country was identified as “among the most at risk” from the oil shock by the Centre for Global Development, but that same vulnerability is what has historically driven Jordan’s EV adoption curve — faster than any other Middle Eastern country.

On March 26, Iran’s Foreign Minister announced that ships from China, Russia, India, Iraq, and Pakistan would be allowed to transit the Strait of Hormuz, a partial easing that markets noted cautiously. However, alternative shipping routes remain costly, several Omani ports have been struck by drones, and most major shipping companies have rerouted via southern Africa — keeping landed costs of fuel and goods elevated in Jordan for the foreseeable future.

For buyers in Jordan considering a switch to electric, the cost arithmetic has rarely been clearer. Affordable Chinese EVs, supported by lower import duties than petrol equivalents and a charging network that continues to expand in Amman and along the Sahrawi Highway, offer immediate protection against further pump price increases — whatever the final outcome of the Hormuz crisis.

Sources

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