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Saudi Arabia world’s 4th largest provider of fuel subsidy

Qatar tops list issued by IMF, Luxemburg comes second followed by Kuwait

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)