Saudi Arabia plans to raise gasoline and jet fuel prices in January to better align domestic prices with the international market, a source told Bloomberg.
According to the source, gasoline prices will jump by approximately 80%. Jet fuel prices will be raised to match international prices, Bloomberg reports.
Prices will be increased over a number of years on gasoline, kerosene, diesel, and heavy fuel oil until they reach international levels, the source said. A firm date for achieving price parity has not been set, but could happen as early as 2023 or as late as 2025.
The move, if it happens, is part of the government’s efforts to eliminate its fuel subsidy program and rebalance its budget.
The combination of the oil-price drop in 2014 and the ongoing war in Yemen have proven a heavy drain on the state’s finances, forcing it to consider ways to rein in expenses.
The government is set to announce the budget for next year on December 19th, Bloomberg reports.