Saudi Aramco announced on Sunday new reduced prices for fuel in the Kingdom amid lower oil prices and the coronavirus pandemic.
Gasoline 91’s price was set at 0.67 riyals per liter ($0.18), down 48.9 percent from 1.31 riyals per liter in April.
Gasoline 95’s price was set at 0.82 riyals per liter ($0.22), down 44.2 percent from 1.47 riyals per liter in April.
Diesel’s price was set at 0.47 riyals per liter, Kerosene was set at 0.64 riyals per liter, and liquified petroleum gas (LPG) was set at 0.75 riyals per liter.
Aramco said that the price adjustment of local fuels was subject to change according to changes in export prices of crude oil from the Kingdom to global markets.
Oil crash and coronavirus
Oil prices have plummeted by approximately 60 percent this year as coronavirus lockdowns caused a massive demand shock.
Saudi Finance Minister Mohammed al-Jadaan had told Al Arabiya earlier in May that the impact of the coronavirus pandemic and collapsed oil prices on Saudi Arabia’s economy and finances will show in the results of the second quarter of the year.
Saudi Arabia’s revenues dropped due to historically low oil prices and reduced economic activity amid lockdowns and curfews implemented to curb the spread of the coronavirus.
Oil revenues fell 24 percent in the first quarter of this year to 128.771 billion riyals while non-oil revenues fall 17 percent to 63.3 billion riyals.
“Revenues have seen a huge drop and are expected to continue dropping throughout the year,” al-Jadaan said.
The Kingdom slipped into a $9 billion budget deficit in the first quarter, and its central bank foreign exchange reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011.
However, al-Jadaan stressed that Saudi Arabia is “committed to the task of sustaining public financing and is committed to having enough financial strength to face this crisis even if it is prolonged.”