Saudi Arabia is the world’s fourth largest country in terms of per capita share of fuel subsidy at $3,395 according to a recent study.
The kingdom pays SAR225 billion annually to subsidise fuel, while local consumption amounts to 4.2 million barrels a day.
Qatar topped the list issued by the International Monetary Fund as the rich Arab Gulf nation’s per capita share of fuel subsidy was $5,995.
Luxemburg came second with $3,747, followed by Kuwait with $3,430 while Bahrain and the United Arab Emirates came fifth and sixth with $3,225 and $3,023 respectively.
The study expects the value of government-sponsored global fuel subsidy to reach $5.3 trillion, comprising roughly 6.5 per cent of global gross domestic product, Al-Iqtisadi reports.
The study urged governments that provide fuel subsidies to reform the energy sector if they want to increase public revenues and slash environmental pollution.
A few days ago, the UAE became the first Gulf nation to deregulate fuel prices, which increased by an average of 24 per cent.
($1 = AED3.67, at the time of publishing)