Saudi Arabia should lift cap on domestic fuel prices: IMF

Saudi Arabia should lift cap on domestic fuel prices: IMF

Saudi Arabia should resume letting domestic energy prices rise as part of efforts to reduce consumption and help in hitting reduction targets for emissions, according to the International Monetary Fund. The world’s biggest crude exporter set an upper limit for the domestic cost of gasoline to soften the impact of higher living costs on citizens last year, just a month before announcing a plan to hit net zero carbon emissions by 2060. “There is a lot of efficiency that can be gained by removing the existing subsidies,” Amine Mati, the IMF’s mission chief to the kingdom, said in an interview. Saudi Arabia is in a “good position to step up further the energy-price increase which goes in line with the green initiative and the idea of reducing emissions”. The IMF advice comes as governments around the world are taking steps to contain inflation caused by higher fuel prices and grain shortages. While soaring crude has created problems for energy importers, Saudi Arabia’s economy is set to grow at the fastest pace in a decade, according to the IMF, thanks to oil’s rise and loosening business restrictions under a diversification plan known as Vision 2030. Saudi Arabia should continue to focus