Gulf Cooperation Council (GCC) countries will meet tomorrow to discuss the steps taken in finalising a study on a unified petroleum price across the six-member group.
The issue will be discussed in the 32nd Petroleum Cooperation Committee meeting to be held tomorrow at the headquarters of the GCC in Riyadh, according to an Arab News report.
Oil analyst Rashid Abanami said he expects the process to to save 30 per cent of total fuel consumption in Saudi Arabia, which is smuggled to neighbouring countries to be sold at higher prices.
“A unified market for petroleum products could exist within the next six years. Such a decision could be implemented only after services for public transportation projects in GCC countries become effective. Most residents in these countries use their own means of transport,” he said.
“Petrol and diesel enjoy the support of both Saudi Arabia and Qatar, which makes for much lower fuel prices compared to other GCC states,” he said.
He also pointed out that oil prices in the UAE are comparable to international prices and that a uniform fuel price would lead to a hike in some countries.
This in turn will prompt consumers to rationalise fuel consumption or decide to use cheaper means of transport.
Oil ministers are set to discuss other issues concerning the joint efforts of GCC states in the oil sector, which include the executive list of draft regulations in the common law on GCC mining and energy reports for GCC countries, as well as the results of their meetings with economic partners of other countries and economic groups.
Gulf Cooperation Council is a political and economic union of Arab states including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.