Saudi Arabia’s companies – Tasnee, SABIC, PetroRabigh and Yansab – have announced that their annual production costs would increase in 2016 following the latest government subsidy reforms that led to price hikes of fuel, electricity, and natural gas, Arabian Business reported.

The annual production costs of Tasnee, the National Industrialization Company, are to rise by $50.7m. SABIC, the Saudi Basic Industries Corporation is likely to face a 5% increase in total. PetroRabigh, the Rabigh Refining and Petrochemical Company said it expected a negative financial impact of up to $80m. Yansab, the Yanbu National Petrochemical Company’s production costs are estimated to go up 6.5%. At the same time, all firms have committed themselves to cutting costs and improving their operational efficiency amid energy price hikes, prompted by declining oil revenues due to the persisting glut in global oil supply.

Previous to these announcements, Saudi Oil Minister, Ali al-Naimi, had emphasized that the kingdom will not limit its oil output and that it has sufficient capacity to meet additional domestic demand, Reuters wrote. According to al-Naimi, it is expected that the energy consumption will be reduced in line with energy efficiency strategies that the country is currently undertaking.