Saudi Gazette
A new study by the King Abdullah Petroleum Studies and Research Center (KAPSARC) revealed that consumers respond less to prices when prices are low, but more when prices are high, “perhaps reflecting their curtailment of unnecessary driving in times of high gasoline prices.”
The new study titled “Gasoline Demand in Saudi Arabia: Are the Price and Income Elasticities Constant?” pointed out that “consumers do not stop driving when their disposable incomes fall, resulting in a less elastic response of gasoline demand to income.”