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Saudi Arabia Sets Price Cap on Gasoline Prices in July

The royal directive aims to support citizens by setting price cap (Asharq Al-Awsat)
The royal directive aims to support citizens by setting price cap (Asharq Al-Awsat)
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Saudi Arabia Sets Price Cap on Gasoline Prices in July

The royal directive aims to support citizens by setting price cap (Asharq Al-Awsat)
The royal directive aims to support citizens by setting price cap (Asharq Al-Awsat)

Saudi Arabia set a ceiling on gasoline prices, the most widely used fuel to supply vehicles in the Kingdom.

The royal directive stipulates that the state should shoulder any increase over June pricing during the monthly periodical revision of the pricing.

The Executive Committee for Governance of Amending Energy and Water Products' Prices has announced the issuance of a royal directive, setting the prices in June 2021 for gasoline (Octane 91/SR2.18) and gasoline (Octane 95/SR2.33), noting they shall remain as the local ceiling price for gasoline, as of July 10, 2021.

The gasoline price for July 2021 that witnessed an increase (Octane 91/SR2.28) a liter and (Octane 95/SR2.44) a liter will fall under the approved pricing ceiling. However, the periodic revision of pricing shall remain, noting that it shall not exceed the ceiling, reported Saudi Press Agency (SPA).

"This emanates from the keenness of the leadership on mitigating the burdens of the livelihood of citizens as well as residents, and its ongoing seeking to realize the public interest and to reinforce the local economic activity," according to the official statement.

Saudi Aramco, the largest oil exporter in the world, conducts a periodic monthly review of gasoline prices in the local market to reduce the consumer's vulnerability to fluctuations in export prices.

Saudis welcomed the royal directive, and many commented on social media that despite the dire economic conditions in the world, the Saudi leadership supported its citizens.

They asserted the country's leadership always considers the needs of its people and takes measures that can help mitigate any difficult economic conditions.

Also, on social media, Saudi citizens and residents discussed the directive quoting "gasoline price subsidy" on various sites, praising the state decision.

Saudi Arabia wants to develop the infrastructure for fuel supply services in the Kingdom, led by Aramco.

Aramco has succeeded in developing its service stations sector and enhanced its access to retail customers in Saudi Arabia, following its entry into a 50:50 joint venture with Total, based on operating service stations within the Kingdom.

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Saudi Non-Oil Exports Rise 7.5% in August

Riyadh, Saudi Arabia (SPA)
Riyadh, Saudi Arabia (SPA)
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Saudi Non-Oil Exports Rise 7.5% in August

Riyadh, Saudi Arabia (SPA)
Riyadh, Saudi Arabia (SPA)

With Saudi Arabia experiencing significant growth in investments and improvements in logistics infrastructure, non-oil exports rose by 7.5% year-on-year in August, reaching SAR 27.5 billion ($7.3 billion) compared to SAR 25.6 billion ($6.8 billion) in the same period last year.
According to international trade data from the Kingdom’s General Authority for Statistics (GASTAT), total exports in August declined by 9.8%, amounting to SAR 92.8 billion ($24.7 billion), down from SAR 102.9 billion in August of the previous year. This decline was mainly due to a 15.5% drop in oil exports, which fell by SAR 12 billion ($3.2 billion).
Oil Exports
In August, oil exports totaled SAR 65.3 billion ($17.3 billion), a decrease from SAR 77.3 billion in the same period last year. This drop reflects continued production cuts by the OPEC+ alliance. Consequently, oil exports as a share of total exports fell from 75.1% at the end of August last year to 70.3% in August 2024.
Imports and Trade Balance
Imports decreased by 3.9% to SAR 64.8 billion ($17.2 billion), down from SAR 67.4 billion in August 2023. The Saudi trade balance surplus shrank by 21% year-on-year in August 2024 but improved compared to July, rising to SAR 27.99 billion, an increase of over SAR 10 billion from the prior month.
Key Factors
Economic analyst Rowan bin Rabeean linked the rise in Saudi non-oil exports to several factors, primarily improvements in logistics infrastructure and increased investment in non-oil sectors like manufacturing and technology.
Total foreign direct investment (FDI) inflows last year reached approximately SAR 96 billion, surpassing the National Investment Strategy target of SAR 83 billion by 16%, as reported by the Ministry of Investment and the General Authority for Statistics. FDI inflows also represented 2.4% of GDP in 2023, meeting the National Investment Strategy target.
Bin Rabeean explained that the trade surplus declined due to the drop in oil exports amid rising global oil prices, as well as an increase in imports, which had a negative impact. She expects non-oil exports to continue growing in the coming periods, driven by the goals of Vision 2030 to diversify Saudi Arabia’s economy and boost non-oil exports.