JEDDAH, 24 June 2003 — Saudi Arabia yesterday announced it would hike petrol prices in the domestic market by 13 percent in three years’ time. The decision to raise the price of petrol was announced during the weekly Cabinet meeting held on Monday in Jeddah and chaired by Custodian of the Two Holy Mosques King Fahd.

Culture and Information Minister Dr. Fouad Al-Farsy told the Saudi Press Agency after the session that the Cabinet decided to raise the price of petrol on a recommendation from the minister of petroleum and mineral resources, who asked for a revision of current prices.

The decision, to be effective at the end of 2006, will increase petrol process for consumers from SR0.9 (24 cents) to SR1.02 (27.2 cents) a liter. The profit margin for service station owners has been increased to SR0.9 per liter from SR0.7.

The last time petrol prices were increased was in May 1999, when the prices were doubled to 24 cents a liter. The Kingdom introduced unleaded petrol four years ago in a drive to combat air pollution. Car traders have been given until 2003 to import cars fitted with catalytic converters guaranteeing pollution-free emission.

The Cabinet also agreed to grant Maaden, the Kingdom’s national mining company, concession for the mining and exploitation of iron ore in Wadi Al-Sawayen in Tabuk Province.

Dr. Al-Farsy said the Cabinet reviewed a report on the suffering of Palestinians in the lands under Israeli occupation and stressed the need for a firm and serious international stand against the Israeli aggression. The council called on the international community to force Israel to fulfill its commitments under the arrangements previously agreed to and accused Israel of continuously working to thwart any international effort aimed at moving forward the peace process as evidenced by its ongoing attempts to torpedo the road map.

King Fahd briefed the Cabinet on the consultations and discussions by Crown Prince Abdullah, deputy premier and commander of the National Guard, with various world leaders. These included talks held by the crown prince with the Lebanese prime minister on the situation in the Arab world as well international developments and the position of the two countries on international issues.

King Fahd commended the continuous successes being achieved by security forces in fighting terrorism and hunting the persons terrorizing innocent people in some areas of the Kingdom, including the two holy cities of Makkah and Madinah.

The security forces, the king added, would continue to hunt these terrorists and arrest those who support them and sympathize with them.

King Fahd also commended the cooperation shown by Saudi citizens in this regard and their firm strand with the security forces in a strong show of unity to ensure the continued security and stability of the country.

The Cabinet discussed a number of domestic issues and called on government officials — especially those in charge of service departments — to facilitate the affairs of Saudi citizens and expatriates.

The Cabinet also approved bilateral agreements with Yemen and Gambia on tourism and air transport.