What is behind the dramatic fall in gasoline prices?
On May 11, 2020, Saudi Arabia slashed its domestic gasoline prices. The price of 91-octane gasoline fell from 1.31 to 0.67 Saudi Arabian riyals (SAR) per liter, while the price of 95-octane gasoline fell from 1.47 to 0.82 SAR per liter. As a result of these price reductions, domestic gasoline prices today are very close to those that prevailed before the gasoline price reform in 2018. As a result, some mistakenly believe that Saudi Arabia has introduced gasoline subsidies.