Saudi Arabia to hike domestic petrol prices by 50%

If follows a record budget deficit in the Kingdom

Saudi Arabia to hike domestic petrol prices by 50%

Newly crowned King of Saudi Arabia, King Salman Image credit: Wiki Commons

Petrol prices are set to soar in Saudi Arabia starting tomorrow.

The Kingdom has announced that motorists will have to pay an extra 50% at the pump after posting a record budget deficit of 20% of GDP.

Prices will also increase for electricity, water, diesel and kerosene under the cuts decided by the council of ministers headed by King Salman.

Until now utilities such as electricity and water have been heavily subsidised in Saudi Arabia, but the IMF has recommended raising fuel prices to save around $17bn each year.