Petrol prices could go up 80% in Saudi Arabia

Riyadh - Part of a programme to gradually eliminate energy subsidies

Saudi Arabia plans to raise domestic petrol and jet fuel prices in January, part of a programme to gradually eliminate energy subsidies as the kingdom seeks to overhaul its economy and balance the budget, according to a person with knowledge of the matter.

Petrol prices are set to increase by about 80 per cent, while jet fuel prices will be raised to international levels in one go, the person said. Petrol and other fuels such as diesel, kerosene and heavy fuel oil, will see incremental price increases over several years, he said.

Excluding jet fuel, prices won't reach international levels until 2023 at the earliest, and potentially by 2025. Electricity tariffs won't be increased directly, but will rise gradually with other energy prices, the person said.

The cabinet said on Tuesday the government will implement a cash transfer programme for poorer citizens as it raises domestic energy prices. Authorities intend to start monthly cash payments on December 21 to compensate low and middle-income families. - Bloomberg, Reuters

• Saudi Arabia