Aramco Hikes Diesel Prices in Saudi Arabia, Maintains Competitive Edge
Saudi Arabia’s oil giant Aramco has raised diesel prices in the Kingdom to SR1.66 ($0.44) per liter, effective January 1, 2025. This 44.3% increase marks a significant change compared to the start of 2024, as outlined in the company’s latest update.
However, Aramco kept gasoline prices unchanged, with Gasoline 91 priced at SR2.18 per liter and Gasoline 93 at SR2.33 per liter. These stable rates reflect the company’s pricing strategy amidst the annual diesel price review.
Diesel Price Adjustments Explained
The annual diesel price review forms part of a mechanism introduced by Aramco in 2022, now in its fourth iteration. In January 2024, Saudi Arabia raised diesel prices to SR1.15 from SR0.75 per liter, continuing its gradual adjustments.
Despite the raise, diesel prices in Saudi Arabia remain lower than those in neighboring countries. In the UAE, diesel costs $0.73 per liter, while in Qatar, it is priced at $0.56. In Bahrain and Kuwait, diesel costs $0.42 and $0.39 per liter, respectively.
Aramco has listed kerosene at SR1.33 per liter and LPG at SR1.04 per liter, according to its website. On December 31, Aramco reduced the official selling prices for propane and butane for January 2025. Propane saw a $10 per ton reduction, while butane decreased by $15 per ton compared to the previous month.
Crude Oil Price for Asia
For January 2025, Aramco reduced prices for its Arab Light crude oil for Asian buyers by 80 cents per barrel. The price now stands at $0.90 per barrel above the regional benchmark. Arab Extra Light and Super Light grades experienced reductions of 60 cents and 70 cents per barrel, respectively. Arab Medium and Heavy grades saw cuts of 70 cents per barrel.
Strategic Market Alignment
These price adjustments align with Aramco’s strategy to reflect market dynamics while maintaining competitive energy pricing. The changes underscore Aramco’s commitment to balancing regional and global energy needs effectively.
