Saudi Aramco Slashes Diesel Prices by 44%
state-owned Saudi Aramco announced a dramatic 44% reduction in diesel prices in Saudi Arabia, dropping the cost to 1.66 riyals per liter, according to a company statement released today.This important adjustment follows an annual review of fuel pricing, a practice implemented in 2022.
The price cut marks a considerable shift from the beginning of 2024, when diesel prices saw a significant 53% increase, reaching 1.15 riyals per liter. This latest move underscores the fluctuating nature of fuel costs in the region and their sensitivity to global market dynamics.
“Company filed Aramco Diesel prices in Saudi Arabia By 44% to 1.66 riyals per liter, according to the company’s latest updates on its website today,” the company statement read. This price change only affects diesel; prices for other fuels remain unchanged.
Aramco maintained the price of 91 gasoline at 2.18 riyals per liter, 95 gasoline at 2.33 riyals per liter, kerosene at 1.33 riyals per liter, and liquefied petroleum gas at 1.04 riyals per liter. The stability of these prices contrasts sharply with the significant fluctuation seen in diesel costs.
Ancient Context: Diesel Price Volatility
Diesel prices remained relatively stable for an extended period before 2015,hovering around 0.25 riyals per liter. Though, a significant 80% increase to 0.45 riyals occurred in December 2015, coinciding with broader adjustments to fuel and electricity prices within the Kingdom. Further increases followed in 2018 (a 5% rise linked to the introduction of a 5% value-added tax) and mid-2020 (a 10% increase after the VAT rose to 15%).
The recent price fluctuations highlight the complex interplay of global energy markets, government policy, and domestic economic considerations in shaping fuel costs. While this price reduction offers immediate relief to consumers, the long-term implications remain to be seen.
The impact of these price changes extends beyond individual consumers, affecting businesses reliant on diesel fuel for transportation and operations. the ripple effects could influence inflation and overall economic activity within Saudi Arabia.
saudi Aramco recently announced a important reduction to diesel prices in Saudi Arabia.[1] The price has been lowered by 44% to 1.66 riyals per liter. [1] This change follows a review of fuel pricing,a process started in 2022. [1]
This reduction in diesel prices is significant compared to the beginning of 2024,which saw a 53% increase in diesel prices to 1.15 riyals per liter. [1]
Diesel is the only fuel affected by this price reduction. The prices for other fuels, such as gasoline and kerosene, remain unchanged. [1]
While diesel prices were relatively stable until 2015,2015,there have been several price fluctuations since then,including a major increase in December 2015. [1] Further increases to diesel prices have occurred in 2018 and mid-2020.[1]
