According to a Reuters report and the Saudi Gazette newspaper, other than starting GST (or VAT, as they call it there) of 5%, the Kingdom of Saudi Arabia has also tripled domestic electricity prices and more than doubled their RON95 prices today, the 1st of January 2018.
RON 95 petrol will now sell for 2.04 riyals (RM2.21) a litre as of today, up from 0.90 riyals (98sen per liter).
RON95 price in Saudi was previously raised 50% from 0.60 riyal to 0,90 riyals on 1st Jan 2016.
.UAE has also started their GST of 5% today. They have also raised their RON95 petrol price for the month of January 2018 to RM2.36 from RM2.24 previously.
Unlike in Malaysia, prices of RON95 petrol in both UAE and Saudi Arabia are inclusive of GST as both countries have not exempted petrol from the tax.
With these moves, Saudi Arabia will now cost about the same as Malaysia while UAE's prices will be more than us.
It was not too long ago that both countries' petrol was way cheaper than Malaysia since they produce dozens of times more oil than our country.
Saudi Arabia and UAE government says these moves are essential to secure the future of their countries and make their economies more competitive and efficient.
Eric See-To.
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https://in.reuters.com/article/saudi-energy/saudi-arabia-hikes-gasoline-prices-idINKBN1EQ0PK
