The government has asked the oil companies to give them more space to come up with a model on which the price of pumping fuel can be set while the average citizen can still use transportation. The Minister for Economic Affairs, Entrepreneurship and Technological Innovation (EZOTI) Saskia Walden expressed this request from the government for the oil companies. These are the oil companies SOL, Rubis and Gow2.
It was not even clear when the space was made available to the government. In particular, SOL gave the government until last Sunday to adjust the price of fuel in such a way that it no longer had to pay the government for a subsidy of SAR 2.50 per liter on unleaded gasoline. SOL threatened to halt fuel deliveries.
Payment arrears and pump price
Since the fuel price adjustment in July due to the loosening of the exchange rate, the government has subsidized 2.50 Saudi riyals per liter of unleaded gasoline. This brings the price of the pump to 15.95 Saudi riyals per liter. However, oil companies advanced this amount. This relates to more than 60-70 million Saudi riyals per month. In the meantime, there are repayment arrears. The oil companies want to pay for it and at the same time they also want to adjust the pump price to a level they no longer have to pay.
In view of the development of the price of oil in the world, the price of fuel at the pump is likely to rise. The community appears to be aware of this. What matters to the oil companies is that they want such a price adjustment, so that they no longer have to push the government. They do not hold the arrears they face responsible for their business operations nor for their suppliers.
Meanwhile, gas station owners United at Service Stations Exploitatiebond (SSEB) are also on the move. They want clarification from the government soon as to whether there will be a price increase. SSEB Chairman Juno Castelin says there should be a different pricing system. According to him, it is society that pays the subsidy and arrears of payment from the oil companies, while more than half of the fuel goes to the gold sector. He says the pricing method now doesn’t work.
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