Saudi hikes petrol price by 50%

Saudi Arabia, which has the lowest petroleum prices in the world, has suddenly hiked the price of petrol by 50% at one go. Along with petrol, a host of other product prices have also shot up. At present a litre of petrol costs 0.60 rials ($0.24) or Rs.15.80, as it is one of the largest oil-producing countries. Immediately all the petrol stations in the country put up shutters. They are expected to be opened on Tuesday morning when the new petrol prices are fixed. The Saudi government, headed by King Salman, has been facing budget deficit for long. It is to cover up for the budget deficit that the government took the petrol hike measure. Along with petrol, the prices of diesel, kerosene, LPG and water are also expected to go up. The Saudi government announced the hike at a ministry meeting on Monday. The government said the move was in keeping with the international energy prices. Riyadh has followed in the footsteps of the United Arab Emirates, which was the first Gulf state, to liberalise oil prices early this year.