Gasoline demand in Saudi Arabia - the region's largest consumer of the fuel - is set to remain robust for the medium term even as the country plans to hike prices and women start driving, analysts say.
The world's largest exporter of oil, which began to phase out subsidies in 2015 by raising the price of higher-grade petrol by 50 per cent - plans to raise the domestic prices for gasoline and jet fuel next year.
The new fuel subsidy regime is set to kick in at a time when Saudi Arabia is anticipating a slew of economic reforms including a public listing of a five per cent stake of oil major Saudi Aramco next year.
The price hike will be more of a “gradual” approach in the kingdom, said Fahad Al Turki, chief economist and head of research at Riyadh-based Jadwa Investment.
"For consumers, it [the price hike] was delayed as it was supposed to reach a reference price by 2017 but this has been pushed back to 2018," he said.
Subsidies cost the Saudi economy eight per cent of GDP in 2013 - the highest proportion for an oil exporting country, according to the IMF. Following price reforms undertaken after the slide in oil prices that hurt its oil revenue-dependent economy, the proportion of subsidy to gross domestic product had halved by 2016, according to the fund.
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Fuel demand in Saudi Arabia as well as among other GCC producers fell during 2016 and through to 2017 as enforcement of subsidy regimes curbed consumption, according to a note by BMI Research, a unit of the Fitch Group.
However, Saudi Arabia's lift of the ban on women driving, which is set to come into force in June 2018, is likely to increase demand for gasoline in the country.
"Sixty-five per cent of Saudi women plan to apply for a driving licence and start driving once the ban is lifted. With 6.5 million Saudi women aged between 20-49, it will inevitably expand both the fleet size in and more importantly miles driven," said Iman Nasseri, senior consultant at London-based consulting firm Facts Global Energy (FGE).
"With these underlying driving forces for gasoline consumption in mind, we expect gasoline demand to reach 660,000 barrels a day by 2021 in Saudi Arabia from 568,000 a day in 2016," he said.
Saudi Arabia, which is the ninth largest gasoline market in the world according to US Energy Information Administration, will continue to meet its demand through imports, despite mega-plans to add refining capacities. Demand more than doubled from around 300,000 barrels a day over a decade ago, according to EIA.
"Strong gasoline demand growth more than offsets the planned capacity expansions in Saudi and we expect the country to remain a net gasoline importer in the foreseeable future," added Mr Nasseri.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Scoreline:
Barcelona 2
Suarez 85', Messi 86'
Atletico Madrid 0
Red card: Diego Costa 28' (Atletico)
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Stage 2 results
1 Caleb Ewan (AUS) Lotto Soudal 04:18:18
2 Sam Bennett (IRL) Deceuninck-QuickStep 00:00:02
3 Arnaud Demare (FRA) Groupama-FDJ 00:00:04
4 Diego Ulissi (ITA) UAE Team Emirates
5 Rick Zabel (GER) Israel Start-Up Nation
General Classification
1 Caleb Ewan (AUS) Lotto Soudal 07:47:19
2 Sam Bennett (IRL) Deceuninck-QuickStep 00:00:12
3 Arnaud Demare (FRA) Groupama-FDJ 00:00:16
4 Nikolai Cherkasov (RUS) Gazprom-Rusvelo 00:00:17
5 Alexey Lutsensko (KAZ) Astana Pro Team 00:00:19
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
Sukuk
An Islamic bond structured in a way to generate returns without violating Sharia strictures on prohibition of interest.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%20profile
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