Saudi to raise fuel prices before November

Saudi Arabia is planning to raise prices for petrol and jet fuel in November at the latest, according to reports.

The move follows the lifting of similar subsidies on fuel for cars and other vehicles over the last two years in neighbouring Gulf countries.

Under the plans, Saudi Arabia would adopt the same approach as the UAE by linking car fuel prices to international rates, a source told Bloomberg.

Read: Saudis may follow UAE and cut fuel subsidies

This would see the price of octane 91 increase by around 80 per cent from SAR0.75 to SAR1.35.

Increases to other energy prices will be delayed until early 2018, the source said.

A final decision on the fuel price increase is expected to be made this month or next month. The kingdom last increased prices in December 2015.

The source said car and jet fuel prices would undergo an immediate one-time increase under the plan, with prices for other fuels to increase gradually by 2021.

Caps on diesel and heavy fuel prices are being considered to limit any negative impact on the economy, due to their use for power generation and industrial activity, according to the publication.

The fuel price increase would also see rates for electricity increase gradually.

Saudi Arabia is currently undertaking other reforms to boost non-oil revenues, including a recently introduced SAR100 a month dependents fee for foreigners and the doubling of a work permit fee for expats in the private sector.

Read: Saudi denies increase to work permit fee for foreigners

Read: Over 2.2 million expat dependents registered in Saudi as new fee takes effect

However, it is now said to be scaling back some of its efforts amid concerns the pace of change is proving too damaging to the economy.

Read: Saudi to scale back reform plan