JEDDAH, 24 December 2006 — Saudi Arabia yesterday dropped plans to increase fuel prices and said as of Jan. 1 it would sell Premium 95 gasoline for 60 halalas and Premium 91 for 45 halalas per liter, instead of the previously announced prices of 75 and 60 halalas, respectively. The announcement pleased both Saudis and expatriates as they were expecting a hike in prices from the beginning of the year.
“Custodian of the Two Holy Mosques King Abdullah has ordered that the price of Premium 95 gasoline remains at 60 halalas per liter...while the price of Premium 91 gasoline will be 45 halalas per liter as of Jan. 1,” Petroleum and Mineral Resources Minister Ali Al-Naimi said.
“This is one of a spate of initiatives taken by the king to enhance the welfare of Saudi people,” the minister said while making the announcement. The king’s decision comes a week before the introduction of the second grade gasoline, Premium 91, in the Kingdom. Saudi Aramco had earlier planned to sell the two varieties of gasoline at the rate of 75 and 60 halalas from Jan. 1.
“This is really a good piece of news for all, including ordinary people and businessmen,” said Abdullah Al-Saihati, chairman of Saihati Group.
“This is not the first such decision by the king. We have been blessed by a series of such wonderful gestures. It will benefit everybody, Saudis as well as expatriates. We don’t know how to thank the king. We pray for his long life,” he said. Saihati, a leading businessman in the Eastern Province, said the royal decision would have positive impact on the national economy as a whole.
In May this year, King Abdullah issued a royal decree slashing gasoline prices by more than 30 percent, till Dec. 31, 2006.
According to Mohammed Al-Gahtani of Saudi Aramco, the oil giant was marketing the second grade gasoline to provide a more economical choice for most of the car owners and drivers in the Kingdom. The fact is that most vehicles in the Kingdom have been designed to use 91-octane grade gasoline, which is the new Premium 91 gasoline, he said.
