2016 | Saudi Arabia | Social-economic development | Energy & Mining

Subsidy reform strategy and impact

Context & objectives:

Energy demand in this oil-exporting country has increased annually by 5+% over the last 5 yearsEnergy prices collapsed at the end of 2014, leading to a budget deficit across the GCCThis GCC government launched a study on energy price reform to develop and review possible price change scenariosObjectives :

  • Study the effect of price changes of energy products on households and non-households, and the macro economy
  • Develop a reform roadmap, including necessary communication efforts, to support the implementation of the price changes

Main achievements & impacts
  • International Benchmark of Reforms and Similar Communication Campaigns
  • Roadmap to the implementation of the reform
  • Diagram of the key measures to be undertaken
  • Presentation of alternative solutions
  • Selecting a third party agency to manage public relations

Related references

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