Riyadh – Mubasher: Saudi Arabia is expected to decide the time of raising the domestic prices of fuel and electricity to the end of October, Reuters reported on Monday citing informed sources as saying.
This rise may push the country's economy down.
“Riyadh was delaying a decision on energy prices until it had finished designing a system of cash payments to lower- and middle-income households, which would partially compensate citizens for the pain of austerity,” the agency added.
Government is still discussing who must be compensated, and who does not deserve, an official added, noting that the Kingdom must take into consideration the impacts of higher taxes.
The government also must take steps to mitigate risks for gross domestic product’s (GDP) growth, and the budget.
The procedures of austerity which were implemented, including an initial price rises in energy began to reduce the budget deficit, whereas this come at a high cost to the economy.
During the last week, the Saudi Minister of Energy, Industry and Mineral Resources and chairman of Saudi Aramco stated that the prices increase are likely to occur still in 2017.
