Saudi Arabia approves new law regulating oil products trading

Saudi Arabia’s cabinet approved today a new law regulating trade in petroleum products,  according to a statement on the official Saudi Press Agency (SPA).

The law aims to regulate all aspects of commercial activities related to oil products, including usage, sales, transport, storage, distribution, imports and exports.

Oil products priced by the government are only to be used for fuel by industrial firms and for transportation, the statement said.

Meanwhile, oil products to be used as feedstock have to be purchased at international prices.

Saudi Customs will collect the difference between government and international prices from exporting entities, and will deposit these amounts to the state treasury, SPA said.

The move is part of broader economic reforms by the Saudi government aimed at boosting revenues and reducing state subsidies.