Saudi Cabinet approves petrol price increase

The Saudi Cabinet has approved an increase in the price of petrol across the Kingdom, effective from the first day of Rabiul Thani in the Islamic calendar, equivalent to January 11, 2016. However, national oil conglomerate Aramco said on Twitter that it was immediately closing petrol stations until midnight on Monday, when it will resume sales at new prices from Tuesday, 29th December itself.

As per the Saudi Press Agency, Octane 91 will now cost 75 halalas from the current 45 halalas. Octane 95 will increase to 90 halalas from the current 60 halalas, as per the official Cabinet announcement. That’s a sizeable increase, although still less than petrol prices in the UAE, where fuel prices are not subsidised any more and is on a downward trend.

The move is the first of a series of “comprehensive economic, fiscal, and structural reforms” recommended by the Ministry of Finance and presented during a Cabinet session on Monday. The Ministry had already revealed plans to review government subsidies for fuel, electricity and water as the government announced cuts in the 2016 budget amid a fall in oil prices worldwide this year.

Photo by Mohammed Omar Faruque.