Since the summer of 2014, oil prices have fallen by about 60%, and it hit not only on income of energy companies, but also slowly destroys the economy of oil-rich countries, one of which is Saudi Arabia.
Some analysts believe that Saudi Arabia is largely itself brings damage to its economy, because the country is a member of the organization that controls the production volumes of the movement of prices in the market.
Recall, according to official data, the budget deficit in Saudi Arabia this year totaled $ 98 billion. More than expected, expenses increased 13% to $ 260 billion. At the head of growth - the cost of a military campaign in Yemen and the fight against the terrorist organization ISIS (also known as the Islamic state). Revenue fell 15% to $ 162 billion.
Oil prices have fallen from triple-digit highs in June 2014 to a mark of $ 36.94 as of 7:10 am GMT on Tuesday. It is of great importance for Saudi Arabia, as revenues from oil exports account for 77% of the total income of the country. Compared with the previous year, revenues were down 23%.
The Saudi government announced that gasoline prices - which used to be very cheap - could grow by 50%; the price of diesel fuel, electricity, and water will also be increased to compensate for the drop in income from abroad.
Nevertheless, the economic situation in Saudi Arabia, according to many economists, the product of its own activity. The country is led by OPEC has repeatedly refused to reduce the amount of oil production amid the global oversupply of "black gold".
According to the materials WELTRADE