Saudi Arabia to hike petrol prices by 80%

[Stephen + 67]

As part of its plan to gradually eliminate fuel subsidies, Saudi Arabia plans to raise domestic gasoline prices by 80 percent in January, and make them level with international prices until 2023 or possibly 2025. With the rise of the oil prices in recent months, Saudi Arabia’s budget deficit outlook has started to improve, and the budget deficit for the first nine months of this year declined by 40 percent year-on-year.

 

https://www.bloomberg.com/news/articles/2017-12-11/saudis-are-said-to-plan-80-gasoline-price-increase-in-january

[JohnAtronis + 78]

But I think that according to the plan, the government also approved the outlines for a system of financial allowances to help low- and middle-income households cope with the costs of its economic reforms. Good move

[Rodent + 1,424]

How else are they going to pay for Aramco's $40billion shopping spree?

https://www.wsj.com/articles/saudi-aramco-ramps-up-spending-to-over-40-billion-a-year-1513080419

[Carlsbad + 19]

oh, I know: steal money and assets from the country's business elite?

[Rodent + 1,424]

Just now, Carlsbad said:

oh, I know: steal money and assets from the country's business elite?

 

[Seleskya + 50]

will there be protests over the petrol price hikes? That's the last thing MBS needs right now ... and if there are, can he shut them down quickly enough?

[Kate Turlington + 44]

They've been talking about cutting subsidies for a while. They were supposed to do it in July and then delayed it. The trick is making sure higher prices don't slow industrial activity. But where it concerns protests, I don't anticipate much pushback because the youth in Saudi Arabia seem to be largely backing MBS because he's the first to give them something they think they can look forward to. They're attracted to the 'new guard' Vision 2030, and protests are generally fueled the youth.