Saudi Aramco has increased domestic diesel prices by 44% to SAR1.66 per liter ($0.44/l) as of 1 January. The increase follows a 53% increase a year ago (MEES, 5 January 2024), meaning that prices have now more than doubled from $0.20/l in 2022, as the kingdom seeks to keep a lid on domestic demand which is steadily rising amid the increased construction activity driven by Vision 2030’s ‘gigaprojects.’ Diesel consumption increased by 6% in 2023 to a six-year high 609,000 b/d according to Saudi Arabia’s Jodi submissions, and the latest data to end-October showed it on course for a further incremental increase for 2024.
The diesel adjustment is part of a broader set of price increases for domestic fuels, with a host of industrial firms noting the expected impact on their finances in filings to the Tadawul this week. Firms such as petrochemicals giant Sabic, base oil firm Luberef and industrial players in energy-intensive sectors such as cement and glass have all noted undisclosed increases in the price of natural gas and fuel feedstock. (CONTINUED - 191 WORDS)
