Domestic petrol prices in Saudi Arabia are going to surge in January, next year as indicated by the government. The move is part of an initiative to gradually eradicate amenities for the energy sector.
The initiative will focus on eliminating energy subsidies to optimize the national economy and achieve cost efficiency. Following the move, local petrol and fuel prices in the kingdom will rise up to 80%, while those for airlines will hike at par with international rates.
Heavy fuel oil, diesel and kerosene will also continue to experience incremental rise over the years ahead as part of the program, while those for jet fuel would increase right away. Fuel prices, apart from jet fuel, are not expected to equate with international rates until 2023.
The local government plans on implementing a cash transfer program for the compensation of underprivileged residents in parallel with the increase in petrol prices in Saudi Arabia.