‘Saudi petrol prices nearly the same as that in Malaysia’
KUALA LUMPUR: Saudi Arabia and Malaysia’s cost of petrol per litre is almost the same following the kingdom’s move to raise its prices yesterday.
Barisan Nasional deputy strategic communications director Eric See-To said in Saudi Arabia, RON 95 petrol was now sold for 2.04 riyal (RM2.21) a litre, up from 0.90 riyal.
See-To said apart from doubling its RON95 price yesterday and implementing a five per cent ValueAdded Tax (VAT), which was similar to Malaysia’s Goods and Services Tax, the domestic electricity rates in Saudi Arabia had also tripled recently.
“RON95 price in Saudi Arabia was raised by 50 per cent from 0.60 riyal to 0.90 riyal on Jan 1, 2016.
“The United Arab Emirates (UAE) has also implemented its VAT of five per cent today (yesterday). It raised its RON95 price this month to RM2.36 from RM2.24.
“Unlike Malaysia, prices of RON95 in the UAE and Saudi Arabia are taxed. With these moves, petrol in Saudi Arabia will cost about the same as that in Malaysia, while UAE’s prices will be higher.” See-To said according to reports, Saudi Arabia and the UAE government said these moves were “essential to secure the future of their countries and make their economies more competitive and efficient”.
“It was not long ago that both countries’ petrol was way cheaper than Malaysia since they produce more oil than our country.”