S. Arabia Considers Rise in Fuel Prices

Saudi Arabia is considering increasing retail gasoline and diesel prices in 2017 for the second year in a row, as the world’s top crude exporter pursues a plan to cut its dependence on oil revenue, according to a person familiar with the matter. The rise in domestic fuel prices is expected to be announced before the end of the year, according to the person, who asked not to be identified because the plan is not public, Bloomberg reported. The government is looking into two scenarios for the hike: either linking local fuel prices to benchmark oil prices or to the average of gasoline and diesel fuel prices on the international market, the person said. Media officials at the energy ministry in Riyadh were not immediately available for comment. Saudi Arabia, the Middle East’s biggest economy, is pursuing a plan to rein in spending and reduce dependence on energy after a two-year slump in oil prices. Last year, it took the unprecedented step of reducing fuel subsidies and raising retail gasoline prices by about 50%.