Fahem Al-Hamed
(Jeddah)
Saudi Arabia has always been interested in protecting
its people interests and their prosperity in services area, housing, and
raising the standards of living, especially in the areas which is related to
subsidizing fuel and diesel prices, which is considered to be the lowest among
gulf countries according to an updated price list issued by Gulf cooperation
council on October 2017.
Fuel price, however, in the local market is considered
to be the lowest, compared to the global market, as in Europe the price of
gasoline liter is 6 or 7 SR, while the price in Saudi Arabia is between 75 and
90 nickel. For decades, Saudi Arabia has subsidized gasoline and diesel,
however, now the Saudi government is taking new economic procedures which
require repositioning its economic stance. Hence, it is acceptable to restore
part of the subsidy, taking in consideration that the new prices will remain
the lowest if we take in consideration that (citizen's account program) will be
a good financial support for low and middle-income families. It is noteworthy
that the kingdom announced that it will make it up for the low and
middle-income families affected by the changes on fuel price.
Observers stressed on that raising fuel price is a
necessary element to support the economic reforms made by the kingdom to reduce
subsidy bill that over burden the national budget, in addition developing the
energy efficiency and reduce the consumption to make energy price fair and
equal compared to the global market by 2020. Moreover, Kuwait, Emirates, Qatar,
and Oman have announced recently that hey will raise the fuel price this
October. It is noteworthy that Saudi Arabia is making economic reforms for the
good deeds of its people which considered as the priority of main stream of the
kingdom.