Saudi Arabia's Energy Subsidies Overestimated, Freeing Billions for Public Good
The study looked at energy subsidies in Saudi Arabia from 2007 to 2018. The researchers used a new method to calculate these subsidies for different types of fuel and electricity. Their approach considered how removing subsidies might affect domestic demand and international prices. The findings suggest that the actual energy subsidies in Saudi Arabia could be lower than previously thought. For example, the estimated crude oil subsidy might drop from 3.3 billion in 2018. This means the government may not be losing as much money as originally believed due to these subsidies.