JEDDAH, 1 May 2006 — Custodian of the Two Holy Mosques King Abdullah yesterday ordered petrol price in the Kingdom slashed by more than 30 percent from 90 to 60 halalas per liter, the Saudi Press Agency reported last night.
“In order to improve the living standard of citizens and for the public good, we have ordered that the price of one liter of petrol for the consumer be changed to 60 halalas instead of 90 halalas until Dec. 31, 2006,” a Royal Decree issued by the king said.
The decree said price of 91-octane petrol for consumers would be brought down to 60 halalas from 82 halalas per liter while price of 95-octane petrol will be slashed from SR1.02 to 75 halalas, effective from Jan. 1, 2007.
King Abdullah also cut diesel prices from 37 to 25 halalas per liter, the agency said. “The decree will come into effect the next day morning after its announcement,” the king said.
The new decree comes three weeks after the Council of Ministers reduced bench prices for heavy crude and other crude oils at between 4.90 and 6.30 halalas per liter for all consumers at all distribution centers. The Cabinet meeting also decided that the crude oil prices would be revised every five years in the light of international energy prices. “The prices will remain the same for 10 years for clients who sign long-term purchasing contracts with Saudi Aramco,” the Cabinet said, adding that the period would be calculated from the date on which the contract was signed.
In another development, King Abdullah approved plans proposed by the Ministry of Social Affairs to establish 16,000 low-cost houses at a total cost of SR2.4 billion in the first phase of a major housing project.
Social Affairs Minister Abdul Mohsen Al-Akkas said his ministry was coordinating with regional governorates to sound out the need for housing units in their areas. He said the low-cost housing units would be constructed and furnished with the support of public and private sectors.
He said the government has already allocated SR10 billion from previous budget surpluses to build a total of 64,000 houses. He said spending on these housing units would be supervised by a specialized engineering consultancy firm.
He said the ministry would establish 64,000 housing units in phases within the next four years. “We will start these projects in regions where lands are readily available with necessary services,” the minister said.
