Saudi Arabia might eliminate its gasoline and jet fuel subsidies in November, a source told Bloomberg.
Other energy subsidies would remain in place until 2018, according to the source. Subsidies on other fuels would be gradually reduced between 2018 and 2021, allowing the prices to rise at a slower pace. The source noted that price increases on diesel and heavy fuel oil could be limited to minimize economic impact, as both fuels are used for electricity generation.
The plan, if implemented, could increase the cost of 91-octane gasoline to approximately 1.35 riyals ($0.36) per litter from 0.75 riyals ($0.20), an 80% increase, according to Business Insider.
A final decision should be made in either September or October, Bloomberg’s source said.