Aramco raised diesel prices in Saudi Arabia by 53% to 1.15 riyals per liter, according to the company’s latest updates on its website today.
The company, 90% owned by the Saudi government, conducts an annual review of diesel prices at the beginning of each year. This is the third review of diesel prices after the company approved the annual review mechanism for the first time in 2022.
Saudi Arabia’s total spending on fuel subsidies has increased over the past two years, reaching the highest level among the G20 economies, based on the per capita share of this support, as the Kingdom spent during 2022 about $7,000 per person, equivalent to about 27% of economic output, through subsidies. Explicit and implicit energy, according to a report issued by the International Monetary Fund last August.
Saudi Arabia's diesel consumption
Diesel prices before the first review amounted to 0.52 riyals per liter, and rose to 0.63 riyals at the beginning of 2022, then to 0.75 riyals per liter at the beginning of 2023, reaching 1.15 riyals per liter beginning in the new year.
Aramco kept the prices of all other types of fuel the same at 2.18 riyals per liter for 91 gasoline, 2.33 riyals per liter for 95 gasoline, 0.93 riyals for kerosene, and 0.95 for liquefied petroleum gas.
Data from the Saudi Ministry of Energy indicate that domestic consumption of diesel reached about 177 million barrels in 2021, while the annual average for the five years from 2017 to 2021 reached about 186 million barrels annually.
Europe depends on supplies from the Middle East and America to dispense with Russian diesel
Diesel prices remained stable for a long period before 2015 at 0.25 riyals per litre, and rose by 80% in December 2015, to 0.45 riyals when Saudi Arabia adjusted fuel and electricity prices locally.
In 2018, diesel prices rose to 0.47 riyals, or 5%, when the value-added tax began, which was 5% at the time. During mid-2020, prices increased by 10% when the value-added tax increased to 15%.
