Saudi Arabia May Raise Gasoline Prices by 30% from July
WENews.com/February 27, 2017/Riyadh
Saudi Arabia may increase its domestic gasoline prices by 30 percent from July, industry sources said, part of a reform plan by the world's top oil exporter to align its fuel prices with global benchmark levels.
In December 2015 the kingdom raised the price of 95 octane gasoline to 0.90 riyal ($0.24) per litre from 0.60 riyal.
However, that still kept Saudi Arabia among the countries with the cheapest gasoline prices in the world.
The government now wants domestic fuel prices to be on a par with international levels by 2020. The move, part of reforms to ease the burden of subsidies on government finances, will drive energy efficiency and cut consumption, sources say.
"Basically, a 30 percent is what everyone is talking about," said a person familiar with the matter who declined to be identified.
Two other industry sources confirmed a 30 percent rise was being considered.
"The date or the percentage of the increase will be in line with the financial burden that citizens may shoulder," one of the sources said.
The Saudi Ministry of Energy did not respond to a request for comment.