Gasoline Demands Fall in Saudi Arabia during First Quarter

A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)
A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)
TT
20

Gasoline Demands Fall in Saudi Arabia during First Quarter

A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)
A man walks at a petrol station in Riyadh, Saudi Arabia October 8, 2017. (File Photo: Reuters/Faisal Al Nasser)

The rise in fuel prices this year seems to have had an impact on demand in Saudi Arabia, falling by an average of 7.4 percent in the first quarter of this year, according to official figures.

Data released by the Joint Organizations Data Initiative (JODI) showed that the kingdom consumed an average of 549,000 barrels per day between January and March of this year compared with an average of 590,000 bpd during the same period last year.

Even if the data are compared on a monthly basis and not on a quarterly basis, it is clear that consumption is declining. In January, demand for gasoline fell 7.7 percent from the same month last year, while in February it fell 7.5 percent and in March 5.7 percent.

As of January, the official selling price of 91 octane fuel was at 1.37 riyals per liter and 95 octane fuel at 2.04 riyals per liter. While the price of diesel for the transport sector did not change from the previous basic price of about 0.47 riyals per liter. These prices include VAT.

Although the price of fuel has been adjusted in Saudi Arabia, the Kingdom has been among the countries with the lowest gasoline prices. The Kingdom ranked fifth in the world, with the price of a liter of gasoline $0.37. Venezuela came first with $0.01 per liter, followed by Turkmenistan $0.28, Algeria $0.28. Kuwait ranked fourth in the world at about $0.34, while Egypt and Ecuador ($0.39) came in sixth place.

The data showed that there is a growth in gasoline imports this year, although demand is falling. Saudi Arabia's gasoline imports in March rose by 54.5 percent from a year ago, while in February they rose by 47.4 percent after an increase of 69 percent in January.

Demand for diesel, the second fuel in the transport sector after gasoline, has fallen during all months of the year, although its price remained the same unlike gasoline. Demand for diesel in March fell by 9.6 percent year-on-year, while the decline was 18 percent in February and 13 percent in January, data showed.

Earlier this year, Saudi Arabia's diesel imports fell by about 14 percent before rising by a very large 240 percent in February. In March, imports increased by only 36.4 percent, data showed.



Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
TT
20

Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 

Saudi Arabia’s ambitious economic diversification drive under Vision 2030 continues to deliver solid results, with the National Industrial Development and Logistics Program (NIDLP) reporting a significant contribution of $262 billion to the Kingdom’s non-oil GDP in 2024.

According to NIDLP’s annual report, the program’s activities contributed 986 billion Saudi riyals ($263 billion), representing 39% of the non-oil GDP. This marks a rise from 949 billion riyals ($253 billion) in 2023. Overall, non-oil activities accounted for about 55% of the Kingdom’s total GDP.

The report highlights substantial growth in core NIDLP sectors. The manufacturing sector expanded by 4%, while mining, transportation, and storage sectors saw a 5% increase.

Non-oil exports surged to 514 billion riyals ($137 billion), reflecting a 13.2% year-on-year increase. These exports included 217 billion riyals ($58 billion) in goods, 91 billion riyals ($24.3 billion) in re-exports, and 207 billion riyals ($55.2 billion) in service exports. Among the leading manufactured exports were chemical products at 78.5 billion riyals ($20.9 billion), metals and metal products at 23.3 billion riyals ($6.2 billion), food and beverages at 10.5 billion riyals ($2.8 billion), and electrical equipment exports reaching 42.9 billion riyals ($11.4 billion).

Employment in sectors under the NIDLP umbrella reached 2.43 million workers in 2024, with 508,000 new jobs created, 81,000 of which were taken up by Saudi nationals.

Private sector investment in NIDLP industries totaled 665 billion riyals ($177.3 billion). The Saudi Industrial Development Fund approved loans worth 198 billion riyals ($52.8 billion), while the Saudi Export-Import Bank provided credit facilities valued at 69.14 billion riyals ($18.4 billion).

By the end of 2024, the number of industrial facilities in the Kingdom reached 12,500, while ready-built factories totaled 1,511. Cumulative investments in industrial cities and special economic zones reached 1.412 trillion riyals ($376.5 billion).

Domestic military industries also recorded notable gains, with local sales totaling 34.32 billion riyals ($9.15 billion). The Kingdom continues to push for localization across value chains, including sectors like medical supplies, automotive manufacturing, energy products, and petrochemicals.

Saudi Arabia launched renewable energy projects with a combined capacity of 20 gigawatts in 2024. New solar power agreements were signed for an additional 3.7 GW, while 3.6 GW of new capacity was brought online. A record-low global price for wind energy was achieved, contributing to an annual reduction of 1.7 million tons in carbon emissions.

In the mining sector, exploration spending rose to 228 riyals ($60.8) per square kilometer. Competitive bidding for mining sites increased by 380% compared to the previous year. The sector is targeting a GDP contribution of 176 billion riyals ($46.9 billion) and the creation of 219,000 jobs by 2030.

Logistics continues to emerge as a strategic pillar of the Saudi economy. In 2024, the government issued 1,056 logistics licenses and expanded re-export centers from just 2 in 2019 to 23. Port utilization rose to 64%, while customs clearance times dropped to a mere two hours, strengthening Saudi Arabia’s bid to become a global logistics hub.

The program also exceeded key 2024 benchmarks. The localization rate of the defense industry reached 19.35%, surpassing the 12.5% target. Local content reached 1.23 trillion riyals ($328 billion), above the targeted 1.11 trillion riyals ($296 billion). Emerging industries recorded exports worth 135.6 billion riyals ($36.2 billion), with 3,100 final licenses issued, well above the target of 845 licenses.

The NIDLP currently oversees 284 initiatives, 163 of which have been completed, marking a 57% completion rate. This reflects the program’s strong progress in driving forward Vision 2030’s industrial and economic goals.