Saudi Arabia’s oil giant Aramco announces increased fuel prices at the petrol pumps

A worker counts money at a gas station in Jeddah, Saudi Arabia. (File photo: AP)

Saudi Aramco, the Kingdom’s energy giant, announced it would raise its domestic gasoline prices for August, Reuters reported Monday.

Prices for 91 octane grade gasoline will increase to 1.43 riyals ($0.38) from 1.29 riyals, while 95 octane grade will increase to 1.60 riyals from 1.44 riyals.

Aramco reported its half-year results on Sunday, with the oil producer’s profit hit hard by a plunge in energy demand as prices for petroleum products tumbled. Profit was down 73 percent in the second quarter of the year, but the company said that it would stick with plans to pay $75 billion in dividends this year following its mega IPO last year.

On Monday, the company’s CEO, Ami Nasser, said that the oil giant would continue with plans to boost crude output capacity by 1 million barrels per day (bpd) to 13 million bpd despite cuts in capital expenditure this year and next year.

Aramco’s capital spending plan for 2021 will be “significantly lower than previous guidance,” CEO Amin Nasser also said on a call with analysts and investors after the company’s second quarter results, which were published on Sunday.

Its previous capital spending guidance was $40 billion to $45 billion, he said.

“We are proceeding with increasing our MSC (maximum sustainable capacity) from 12 to 13 million barrels ... it should not have a major impact on capital in 2021,” Nasser said.

With Reuters.

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Last Update: Tuesday, 11 August 2020 KSA 13:45 - GMT 10:45