Causes and Effects of Gas Prices Increase in Saudi Arabia

This paper investigated the causes and effects of gas prices increase in Saudi Arabia. Saudi Arabia is known as a larger producer of oil and world leading exporter. The study aims to reveal the effects of high prices of gases along with the question what causes these high prices in today’s economy. Saudi Arabia’s main products to export oil and natural gas since it accounts up to 90 percent of total country’s exports. There is a very high demand of gas by most of countries along with USA. In this study, the use of gas cylinders among households and use of gas products in different industries is investigated by considering it as the causes of gas prices rise. Government expenditure and frequent transaction by individuals may be also the considered one of many causes of this rise. Since Saudi Arabia mainly export oil as major source of income, fluctuation in gases’ prices has probability of causing greater effects on other income generating sectors. For instance, external factors reduced oil reserves in oil producing countries, and new marketing partners caused by bilateral talks among head of states which led to the rise in gas prices

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Journal of International Environmental Application and Science-Cover
  • ISSN: 1307-0428
  • Yayın Aralığı: Yılda 4 Sayı
  • Başlangıç: 2006
  • Yayıncı: Selçuk Üniversitesi