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Saudi Arabia is considering a plan to increase domestic gasoline and jet fuel prices latest by November, along with linking local rates with international oil prices, Bloomberg reported, citing an unnamed person with the knowledge of the matter.
At current price levels, the measure would lead to an increase in octane-91 grade gasoline to about SAR 1.35 per liter from SAR 0.75, or an increase of about 80 percent, the person said.
Increases in other energy prices are likely to be delayed until early 2018, the person said. Authorities are expected to make a final decision on the plan this month or in October, the person said.
Gasoline and jet fuel are expected to undergo immediate, one-time increases under the plan, while prices of other fuels would be raised gradually by 2021, the person said.
The government might consider putting a limit on increases in diesel and heavy fuel oil to offset any negative impact on the economy, as both are used for power generation and industrial activities, the person said. Electricity rates would rise gradually, the person added.
Saudi Arabia, the world’s biggest oil exporter, had first raised fuel prices in December 2015 and announced plans for further increases.
Earlier, in August 2015, the United Arab Emirates removed subsidies on transport fuel and linked gasoline and diesel prices to global oil markets.
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