Saudi Arabia working to soften blow of subsidy cuts

Saudi Arabia will seek to limit the impact of subsidy cuts on citizens as the country tries to overhaul its economy for the post-oil era, said Deputy Crown Prince Mohammed bin Salman.
The government is developing a mechanism to provide cash to low- and middle-income Saudis who rely on subsidies, the deputy crown prince told Bloomberg in an interview released Monday.
"We don’t want to change the life of the average Saudi,” the deputy crown prince said. “We want to exert pressure on wealthy people, those who use resources extensively.”
Deputy crown prince suggested that cash handouts may reduce 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," he said. "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."