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Saudi Arabia looking at cutting gasoline subsidies

Staff writer |
Saudi Arabia is looking more closely at cutting gasoline subsidies, a move it has been studying for years, after the United Arab Emirates did so last month, with both states trying to save money in an era of cheaper oil, a newspaper reported.

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Al Watan's Saturday edition quoted unnamed sources as saying Saudi Arabia cannot leave gasoline prices at ultra-low levels indefinitely because that would hurt the economy.

United Arab Emirates let gasoline prices rise 24 percent last month.

The newspaper did not elaborate on when the government might make a decision and gave no details on the possible reform. A source in the Gulf oil industry told Reuters that Saudi officials were "seriously" thinking about reducing fuel subsidies gradually.

Unleaded gasoline costs only about 15 US cents per liter in Saudi Arabia, the world's lowest price after Venezuela, according to website mytravelcost.com.


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