The Saudi government has implemented several policies to slow the growth of, or even reduce, its on-road motor gasoline consumption. These include demand-side policies such as raising fuel prices and supply-side policies such as the fuel economy standards (SASO and SEEC 2014). However, the extent to which these policies have been effective in improving the Saudi new vehicle fleet fuel economy is not well understood. This commentary highlights the findings from a recent KAPSARC paper published in the Energy Economics journal that explored the impact of fuel- and vehicle price-related policies on Saudi Arabia’s new vehicle fleet fuel economy (Sheldon and Dua 2020).
