Increasing Revenue: Petrol prices hiked in Saudi Arabia

RIYADH: Saudi Arabia started on Monday the hike of local gasoline prices and electricity tariff and activation of the value-added tax (VAT). About gasoline, the Octane 91 will sell for 1.37 riyals ($0.36) a litre, up from 0.75 riyals ($0.2), while Octane 95 will sell for 2.04 riyals ($0.544) a liter, up from 0.90 riyals ($0.24), Al Arabiya local news reported on Monday. The price of diesel for trucks remains unchanged.

This is the second hike since the beginning of disturbance in oil prices in the international markets. The country also introduced on Monday the VAT within the framework of a unified agreement endorsed by the member states of the Gulf Cooperation Council (GCC). “The imposition of VAT will help to raise tax revenues of the Saudi government to be utilised for infrastructure and developmental works,” said Mohammed Al-Khunaizi, a member of the Shoura (consultative) Council according to Arab News.

Published in The Express Tribune, January 2nd, 2018.

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