Riyadh Cement assesses financial impact of fuel price hikes: CEO

Shoeil Al Ayed, CEO of Riyadh Cement Co.

Riyadh Cement Co. is currently evaluating the financial impact of the recent fuel price hikes and will announce the results upon completion, CEO Shoeil Al Ayed told Argaam.

Al Ayed explained that the prices of crude oil, heavy fuel oil, and diesel supplied by Saudi Aramco increased by 26%, 47%, and 47%, respectively, while gas prices rose by approximately 23%.

He noted that the timing of the price hike was unexpected and occurred more quickly than anticipated, particularly following a similar increase a year earlier.

Al Ayed highlighted that, despite the recent increases, fuel prices in Saudi Arabia remain below global levels and still subsidized so far. However, he acknowledged that prices will eventually align with global benchmarks, urging factories to prepare for this shift by enhancing their competitive position.

He underscored the importance of the Industrial Competitiveness Program, supported by the Ministry of Industry and Mineral Resources, in alleviating the financial strain on cement companies. The program aids operational efficiency, optimizes energy consumption, reduces costs, and enhances profit margins.

The CEO expressed optimism about the future of the cement sector, citing ongoing megaprojects across Saudi Arabia—particularly in Riyadh—alongside strong government support and initiatives led by the Ministries of Industry and Energy.

Additionally, Al Ayed highlighted an increase in demand since the start of Q4 2024, coupled with stable selling prices, which he believes will help companies offset the impact of fuel price hikes.

According to data available with Argaam, Riyadh Cement received a notice from Saudi Aramco regarding adjustments to fuel prices used in production, effective Jan. 1, 2025. The financial impact of these changes will appear in the company’s financial results starting Q1 2025.