Oil ministers in GCC countries will discuss steps that have been taken toward finalizing a study on a single price of petroleum products in GCC countries next Tuesday during the 32nd Petroleum Cooperation Committee meeting.
The meeting will be held in Riyadh at the headquarters of the Secretariat General of the Gulf Cooperation Council.
Oil analyst Rashid Abanami expects the process to contribute to saving 30 percent of the total consumption of fuel in Saudi Arabia, which is smuggled to neighboring countries to be sold at higher prices.
“A unified market for petroleum products could exist within the next six years,” said Abanami.
“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.”
Abanami referred to the big disparities in the prices of petrol and diesel in Gulf states. “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, pointing out that oil prices in the UAE are comparable to international prices.
He said a uniform fuel price would lead to a hike in some countries. This in turn will prompt consumers to rationalize fuel consumption or decide to use cheaper means of transport.
Oil ministers will 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.
The meeting will also discuss a follow-up report on meetings held for the development of the United Nations Framework Convention for Climate Change and the Kyoto Protocol and the updated strategic petroleum summary of the Gulf Cooperation Council.
It will look into the recommendations made by the first petroleum media forum at the GCC and the reports of the Cooperation Council for Energy Affairs in the World Trade Organization and free trade agreements.