JEDDAH: Saudi Arabia is set to limit the impact of subsidy cuts on citizens as it prepares to implement an economic vision for the future, Deputy Crown Prince Mohammed bin Salman told Bloomberg in an interview on Monday.

The proposed system being developed by the Saudi government would provide cash to low and middle income Saudis who rely on subsidies, he said.

“We don’t want to change the life of the average Saudi… We want to exert pressure on wealthy people, those who use resources extensively,” he said at King Salman’s private farm in Diriyah.

Under the previous system, 70 percent of the subsidies benefited high income people, Bloomberg cited the deputy crown prince as saying.

The prince explained — using electricity prices as an example — how cash handouts can lead to reduced consumption.

“Let’s say the international price for electricity is 1,000 riyals and you only pay 50, we will give you the 1,000 riyals and increase the price of electricity … You will have two options: You either spend the 1,000 on electricity bills like you used to, or you can lower your electricity consumption and use it on something else.”

He said that a recently imposed water tariff, which saw a surge in complaints among citizens, was applied in an “unsatisfactory” way and that will be rectified.

“Honestly speaking, what happened wasn’t in accordance with the plan that we’ve approved,” he said.

“Now, we are working diligently on reforms within the water ministry so that things will be in accordance with the agreed plan,” he added.