Here's how global fuel prices are determined

The majority of oil-producing countries seek to define fuel prices based on export prices, which leads to unstable local prices impacted by the fluctuations of global price indices, as well as supply and demand.

In the absence of a uniform global indicator of export prices, countries use benchmark prices as a reference point for deciding on the fuel prices.

There are many providers of benchmark prices for crude oil, oil products, and energy exports such as S&P Global Platts.

Some countries like the United States update fuel prices on a daily basis. In countries such as Germany, however, export prices of gasoline/ diesel correspond to the rate of change more than once in a day. South Korea updates prices on a weekly basis, while the UAE updates prices on a monthly basis.

Saudi Arabia, on the other hand, is reviewing fuel prices on a quarterly basis, based on the government’s water and energy tariffs.

Export prices are the rates per barrel at which fuel is exported from Ras Tanura Refinery to beneficiaries outside the Kingdom.

Saudi Arabian Oil Co. (Saudi Aramco) announced the new fuel prices for Q3 2019, effective as of July 14, 2019.

Saudi Aramco increased local price for Octane 91 gasoline to SAR 1.53 per litre, up from SAR 1.44 per litre. It also raised price of Octane 95 to SAR 2.18 per litre up from SAR 2.10 per litre.

Gasoline prices in Saudi Arabia are considered low, compared to the G20 states.

The below table shows the top 10 countries with the lowest diesel prices, as per GlobalPetrolPrices.com, as the Kingdom is ranked the fifth:

*Prices as of July 15, 2019

The below table shows the top 10 countries with the lowest gasoline prices, as per GlobalPetrolPrices.com, as the Kingdom is ranked the sixth:

*Prices as of July 15, 2019

The below table shows the top 10 countries with the lowest Octane 95 prices, as per GlobalPetrolPrices.com, as the Kingdom is ranked the 21st: