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Al-Falih: Gasoline in Saudi Arabia is Among the Cheapest in the World despite Price Hike

A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. REUTERS/Faisal Al Nasser
A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. REUTERS/Faisal Al Nasser
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Al-Falih: Gasoline in Saudi Arabia is Among the Cheapest in the World despite Price Hike

A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. REUTERS/Faisal Al Nasser
A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. REUTERS/Faisal Al Nasser

Saudi Energy and Industry Minister Khaled Al-Falih said that the price of gasoline in the kingdom was still one of the cheapest in the world despite the recent price hike, noting that it was lower than in other Gulf countries such as the UAE and Oman.

In a television interview with Saudi Arabia’s Channel One, the minister said that the price of gasoline in the kingdom was also low compared to the rest of the oil-producing countries such as the United States, where prices are twice of those in the Kingdom.

“The global average in general is more than double the prices in Saudi Arabia after the reform,” he added.

Moreover, the price of gasoline in Norway, one of the largest oil producers in Europe, exceeds by three times the price in the Kingdom, because of the high taxes imposed by the country on fuel, according to Al-Falih.

Figures from the Organization of the Petroleum Exporting Countries (OPEC) show that most of the world’s gasoline prices are high because of taxes. The US tax on gasoline reached about 24 percent in 2016, as OPEC stated in its latest statistics on the price of gasoline globally.

“Work is underway to raise the price of gasoline gradually to reach the world price by the end of the period of financial reform adopted by the State,” the minister said, adding that gasoline prices in the future would not be fixed and would depend on the global price fluctuations.

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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.