This project will develop a framework to evaluate how households in the Kingdom of Saudi Arabia (KSA) allocate their budgets. Framework allows to analyze the implications of energy price and other policy reforms on household budgetary allocation. We will develop an initial version of the model that focuses on household budget allocation on gasoline that would arise under different price reform scenarios. Future studies will focus on expanding the household budget allocation model to a more general set of allocation choices that can arise from changing dynamics in the KSA such as the changes in the population structure (aging population, later age marriage, more single individual households), increasing income level, changing labor market structure (more skilled jobs, less expatiates).