Al-Jouf Agricultural expects nearly 2% rise in costs on fuel price hike

Al-Jouf Agricultural Development said the fuel price amendment will increase production and distribution costs.

Al-Jouf Agricultural Development Co. received a notice from Saudi Aramco, on Jan. 1, regarding an increase in fuel prices used in its operations, effective immediately, according to a Tadawul statement.

The fuel cost hike will increase production and distribution costs, the statement added.

The direct financial impact is estimated at approximately 2% of total costs, based on the latest audited annual financial statements for 2024. The impact is expected to appear starting from Q1 2026.

At the end of 2024, the company joined the Industrial Sector Competitiveness Program, which reduced the financial impact and improved energy consumption efficiency.

Al-Jouf Agricultural reaffirmed its commitment to enhancing operational efficiency and productivity.

According to data available with Argaam, the company said that its participation in the Industrial Sector Competitiveness Program last March helped reduce the impact of higher production costs introduced at the beginning of January 2025 to around 6% of total costs, compared with about 7% previously, based on 2024 audited annual financial statements.