Cabinet OKs hike in gasoline, electricity and water prices

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Updated 29 December 2015
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Cabinet OKs hike in gasoline, electricity and water prices

RIYADH: The Cabinet on Monday approved increases in the pump prices of gasoline as well as electricity and water rates, the first of a series of “comprehensive economic, fiscal, and structural reforms” recommended by the Ministry of Finance.
Gasoline price hikes are to take effect after 12 midnight Monday, while the adjustments in electricity and water rates will start on the first day of Rabiul Thani in the Islamic calendar, equivalent to January 11, 2016 in the Gregorian calendar.
Octane 91 will now cost 75 from the current 45 halalas. Octane 95 will increase to 90 halalas from the current 60 halalas, a Cabinet announcement carried by the Saudi Press Agency (SPA) said.
With the directive, Saudi Aramco has ordered that all gasoline stations across the kingdom be closed by nightfall to allow the adjustment of prices in their pumping machines.
Other Gulf states such as the United Arab Emirates and Kuwait have earlier raised their pump prices amid a decline in oil prices worldwide, resulting in reduced revenues.
The new rates were approved during a Cabinet session on Monday, during which Custodian of the Two Holy Mosques King Salman also announced a national budget plan of SR840 billion for 2016, with a view to reducing the deficit and a drive to raise revenues from sources other than oil.
In a press statement released earlier in the day, the MOF revealed plans to review government subsidies for fuel, electricity and water as the government announced cuts in the 2016 budget.
The ministry said it is considering “revisions in energy, water, and electricity prices gradually over the next five years, in order to achieve efficiency in energy use, conserve natural resources, stop waste and irrational use, and minimize negative effects on low and mid-income citizens and the competitiveness of the business sector.”
Another measure mentioned by the Finance Ministry is a review of current levels of fees and fines, introduction of new fees, and completion the necessary arrangements for the application of the value added tax (VAT) approved by the Supreme Council of the Arab Gulf States Cooperation Council at its 36th session held in Riyadh last month.
The ministry also called for the “application of additional fees on harmful goods such as tobacco, soft drinks and the like.”
Among the other measures outlined by the MOF are more on structural reforms, including:
• Reducing the growth of recurring expenditures, especially wages, salaries, allowances and the like, which amounted to SR 450 billion, exceeding 50 percent of the approved budget expenses.
• Optimizing operating expenditures, including the rationalization of government agencies’ expenses, the utilization of technology (IT) for the delivery of government services, and the development and strengthening control and governance mechanisms.
• Completing the revision of the government’s competitiveness and procurement law, in accordance with world-class practices.
• Establishing a unit in the Ministry of Finance for public debt management. The new unit will be responsible for developing and overseeing the public debt and financing strategy and strengthening the Kingdom's ability to borrow both domestically and internationally; thus contributing to the market for sukuk and local bonds.


Saudi Arabia’s first ’smart’ pharmacy inaugurated

Updated 1 min 59 sec ago
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Saudi Arabia’s first ’smart’ pharmacy inaugurated

TABUK: Prince Fahd bin Sultan, governor of Tabuk region, inaugurated the Kingdom’s first smart pharmacy — operated by a robot — at King Fahd Specialist Hospital on Thursday, following his meeting with the province’s director general of health affairs, Ghurmallah bin Abdullah Al-Ghamdi.
It is hoped that the smart pharmacy — which can dispense 1,500 packages of medicine per hour, store over 20,000 packages of medicine, reject expired drugs, and deal with 240 prescriptions per hour — will save the time of patients and pharmacists, ensure better control of drug stocks, provide the highest safety standards, and reduce medication errors.
The pharmacy has six outlets, one of which is dedicated to serving disabled people.
Prince Fahd congratulated Tabuk Health Affairs on this achievement, which he said would contribute to better health care services.
He stressed that serving citizens was the main objective and praised the role of young men and women in meeting the requirements of the future.
He also thanked King Salman and Crown Prince Mohammed bin Salman for their support for the health care sector in Saudi Arabia.
Al-Ghamdi thanked Prince Fahd for his support for the health care sector in the province.