By Suleiman al-Khalidi

AMMAN, Feb 7 (Reuters) - Jordan announced sharp fuel price rises on Thursday in a move that could provoke popular protests as it attempts to shield its economy from the spiralling cost of imported oil.

Officials said the cabinet endorsed the removal of fuel subsidies and steep increases of up to 76 percent on a range of petroleum products at a meeting late on Thursday. The changes would take effect at midnight on Friday.

The officials said there was no alternative to the long delayed move in a country with high unemployment, where steep gasoline price hikes have in past years sparked civil unrest.

"It was no longer possible to delay the removal of subsidies after oil hit record prices even at the risk it would aggravate popular anger with government policies and could lead to civil unrest," one official who requested anonymity told Reuters.

A cabinet announcement said prices of ordinary gasoline would go up by 33 percent while premium petrol would go up by 9 percent.

The highest increases would affect diesel and kerosene, widely used by ordinary Jordanians for heating. Both would increase by 76 percent while a 52 percent hike was slapped on gas cylinders used for cooking.

The price increases, which are among the steepest in more than a decade, fully liberalise energy prices after years of hefty subsidies.

The kingdom began a phased lifting of subsidies on gasoline, diesel, fuel oil and kerosene in 2005.

But after strong parliamentary opposition and fears of potential social instability, the government backtracked from a last round agreed with the International Monetary Fund (IMF) in August last year that would have led to full energy price liberalisation.

PUBLIC FURY

The government, mindful of public fury that exploded in street clashes in the depressed south of the country in two major price hikes in 1989 and 1996 has sought to allay fears of an erosion in living standards.

Officials insist they want to cushion the impact of price hikes on low income Jordanians, a majority of the country's 5.7 million population.

The government says it plans substantial salary increases of state employees and will adopt measures to tame rising inflation It pledged more projects to fight unemployment and poverty.

Many Jordanians say the move will only further add to a growing atmosphere of disenchantment with the failure of successive governments to deliver on promises of economic prosperity.

Officials say privately they do not expect any trouble and that heightened security will ward off potential problems.

Before the invasion of Iraq in 2003, Jordan had been insulated from higher oil prices by free supplies of Iraqi oil.

Jordan now imports most of its energy at commercial rates. (Writing by Suleiman al-Khalidi; Editing by Charles Dick)

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