Saudi companies hit as Aramco increases diesel price

Saudi Aramco has increased diesel prices by 8 percent from January 1, with several Saudi-listed companies, particularly cement producers, announcing higher production costs.

The new diesel price stands at SAR1.79 ($0.48) per litre this year, up from SAR1.66 in 2025, according to the energy company’s website.

Aramco, 81.5 percent owned by the Saudi government, has held an annual diesel price review since 2022 at the start of each year.  

The price stood at SAR0.63 in 2022, rising to SAR0.75 in 2023 and SAR1.15 in 2024.

Shares in Aramco, listed on the Saudi stock exchange, closed 0.2 percent higher at SAR23.88 on Thursday but are down nearly 15 percent in the past year.

In separate statements to the Saudi bourse, Riyadh Cement, Umm Al-Qura Cement, Northern Region Cement, Qassim Cement and Arabian Cement announced increases in manufacturing costs of 6 to 11 percent.

Further reading:

• Aramco dividend vital to big-spending Saudi Arabia
• Aramco gas plans ‘on track’ despite revenue slump
• Projects worth $90bn underway, says Aramco chief

Middle East Paper Co and the Power and Water Utility Company for Jubail and Yanbu (Marafiq) added that the price increase will impact their cost of sales.

Riyadh imposes a 15 percent value-added tax on diesel prices.

As a Vision 2030 initiative, the government has already launched a displacement programme to replace liquid fuels with natural gas and renewables in the manufacturing, power, industry and agriculture sectors.

The aim is to displace over 1 million barrels of oil daily by 2030 and cut carbon emissions.