Wednesday 31 December 2025 – 10:41 PM
Saudi Aramco announced the update of diesel and diesel prices in the local market, as it was decided Raise the price By 7.8%, reaching 1.79 riyals per liter, according to the latest updates published on its website today.
This step comes in implementation of the annual review mechanism adopted by the company, which is majority owned by the government, at the beginning of each calendar year. This review is the fifth of its kind since the annual evaluation mechanism was approved for the first time in 2022, as part of the Kingdom’s efforts to regulate energy prices locally, according to Saudi newspapers.
This increase reflects a series of price shifts that diesel fuel has witnessed over the past decade, as prices were stable at levels of 0.25 riyals per liter before 2015, after which they witnessed successive jumps that began with an increase of 80% in December 2015, coinciding with the plan to adjust fuel and electricity prices. These periodic reviews aim to keep pace with economic changes and ensure energy efficiency, while continuing to provide support to the transportation and logistics system to serve the goals of the Kingdom’s future vision.
Historical development of diesel prices in light of tax and structural variables
The trajectory of diesel prices in the Kingdom witnessed major milestones related to financial reforms. In 2018, the price rose to 0.47 riyals by 5%, coinciding with the start of implementing the value-added tax for the first time, while the middle of 2020 witnessed another increase of 10%, bringing the price to 0.52 riyals, after raising the value-added tax rate to 15%. These increases are considered a preliminary stage that precedes the implementation of the comprehensive annual review mechanism that Aramco currently follows to link prices to new economic data.
The new price (1.79 riyals per liter) reflects the large difference compared to pre-2015 levels, which indicates the state’s success in restructuring the energy sector and reducing the financing burdens resulting from direct support, while maintaining the stability of supply chains. Economic circles are monitoring the impact of this slight increase on the costs of transportation and logistics services, in light of the strong growth in industrial and commercial activity witnessed by the Kingdom, and companies’ search for technical solutions to raise the efficiency of fuel consumption to meet annual price updates.
