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Mon 28 Dec 2015 07:02 PM

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Saudi Arabia raises domestic energy prices

Domestic fuel, water and electricity prices are currently among world's lowest because of heavy state subsidies

Saudi Arabia raises domestic energy prices
Petrol station, fuel shortages

Saudi Arabia has raised domestic energy prices, including fuel prices, state news agency SPA said on its Twitter account on Monday.

Domestic fuel, water and electricity prices are currently among the lowest in the world because of heavy state subsidies.

Raising the prices would reduce pressure on the state budget and would be one of Saudi Arabia's biggest economic reforms in many years.

The world's largest oil exporter has set the price of 95 octane gasoline at 0.90 riyals ($0.24) per litre, SPA said, up from the current price of 0.60 riyals per litre.

The kingdom has also raised prices for gas, diesel and kerosene, according to SPA.

Saudi Aramco's chairman Khalid al-Falih said on Monday he was confident that local industries, including the Saudi petrochemical sector, would adjust to the rise in domestic energy prices and remain competitive.

Earlier, the government said it was hiking prices for fuels, water and electricity as well as gas feedstock used by industry, as part of subsidy reforms designed to help state finances cope with low oil prices.

The price of methane was raised to $1.25 per million British thermal units and ethane to $1.75; previously, both were at 75 US cents, among the lowest in the world.

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