Saudi Arabia has already started to make its vision into reality. Saudi Vision 2030 is the primary goal of the leaders of the Kingdom. Making their country a modern infrastructure is what they want at the moment, and for that, they are now going to avail themselves of the public of the country. The Arabian government has announced an increase in the oil rates for September of the ongoing year. All they want is the raised revenue, which in this case they are going to make by cutting off the subsidies for the oil market, which will ultimately result in the hike of oil prices in the oil market.
Saudi Arabia owns more than 15% of the oil reserves in the world. In other words, oil export brings Saudi Arabia a lot of money. This makes up half of their G.D.P., not a quarter but half of it. We can all imagine the role of petroleum products in maintaining the economy of the Arabian Kingdom. So at the moment, the Kingdom is going through a hard time due to the pandemic. So all this price hike is going to make up the deficit caused by this novel coronavirus. All this may have affected the world, but for Saudi Arabia, it has caused a big blow to their upcoming plans for Saudi Vision 2030.
ARAMCO is the Saudi Arabian Oil Company that has the second most crude oil reserves in the world. The company has reduced its fund, which was used by the company to refine oil. This will result in some shortage of petroleum products, and the retailers would be compelled to increase the price. That is how the government is going to make a profit from the oil and gas products.
Gasoline 91, was being sold at 1.43 Saudi Riyals in August. In September, it has risen to 1.47 Saudi Riyals making the price hike of almost 2%.
Gasoline 95, has an increased price as compared to the cost of August. In the previous month, its price was 1.6 Saudi Riyals, which now has risen to 1.63 Saudi Riyal, which has the same percentage of increment.
Starting off with the benzene91, this year in July, its price was 0.98 Saudi Riyals, and now in September, its price is 1.47 Saudi Riyals. It rose from 0.98 to 1.29, 1.29 to 1.43, 1.43 to 1.47 Saudi Riyals in July, August, and September.
Benzene95, which is the most commonly used petroleum product in the vehicles, Its price was 1.18 Saudi Riyals in the month of June; in July, it was announced to be sold at 1.44 Saudi Riyals. Then its price sort of rose a bit more, and now in September, it is being bought at 1.63 Saudi Riyals.
Diesel and kerosene had a price of 0.47 and 0.64, respectively. In the month of July, their prices increased a bit and remained the same until September. Now the price of diesel is 0.52 Saudi Riyals, and the cost of kerosene is 0.70 Saudi Riyals.
The price of LPG is the same as it was in June, which is 0.75 Saudi Riyals.