Saudi Arabia announces price cap for fuel

Saudi Arabia announced that it has set a fixed price cap for fuel, which will come into effect from 10 July, reported the Saudi Press Agency. 

The price of a litre of octane 91 fuel would be capped at 2.18 riyals, while a litre of octane 95 would be capped at 2.33 riyals, according to the Energy and Water Price Reforms Executive Committee.

The price caps were based on the prices recorded in June. 

“This stems from the leadership’s keenness to reduce the living burdens of citizens and residents, its continuous pursuit to achieve the public interest, and support local economic activity,” a statement provided to the Saudi Press Agency said. 

The committee stated that, while the local cost of fuel may still change, as the international markets move, the additional cost of any prices that would have exceeded June’s price, would be born by the government. 

Discontent over the subsidy reforms introduced by Saudi Crown Prince Mohammed Bin Salman has been growing in the country, with food prices also rising and value-added tax tripling.