Saudi Arabia

New fuel prices will be implemented from Jan 1

The General Authority of Zakat and Tax informed that the standard Value Added Tax (VAT) of five percent will be applied to purchasing petrol and diesel.

The confirmation was stated in a reply to an online question about whether there would be a VAT rate for petrol.  “The VAT rate of five percent for petrol will be applied at the start of January 1, 2018,” GAZT said.  

Expected New Fuel Price    Petrol 91 – 0.788 (old price: 0.75) Petrol 95 – 0.945 (old price: 0.90) Diesel     – 0.473 (old price: 0.45)  

Ministry already announced a gradual subsidy cut on fuel, previously some sources were reporting that by November fuel prices will hike by 80%.  The finance minister said earlier this month that some financial reforms may be postponed for a few years. But it is not clear whether hikes in fuel prices will be postponed for a few years or not.

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