The Saudi government has increased the price of petroleum-based fuels as it seeks to reduce subsidies at a time of low crude prices (MEES, 8 January 2016). Significant increases to the price of gas improve the economics for its production, potentially boosting government efforts to promote it as a source of electricity in order to reduce ever-rising crude burn levels.
Although the Ministry of Finance has only broadly publicized prices for gasoline and natural gas, MEES estimates of prices for other fuels suggest that the finances of Saudi electricity generators could be significantly hit. (CONTINUED - 964 WORDS)
