NO. 15


Saudi Supply

New Fuel Prices Should Help Ease Aramco's Domestic Demand-Arabia Problems

While there is little question that Saudi Arabia's 1995 budget decision toincrease highly-subsidized domestic petroleum product prices was motivated inlarge part by a desire to generate much-needed additional revenue for theKingdom (see budget analysis on page B1), the benefits of the new pricingstructure will extend to other areas of the economy as well, most notably in the...