DUBAI, July 10 (Reuters) - Saudi Arabia, the world's largest
oil exporter, set a cap on local gasoline prices for July to
help alleviate rising living costs and boost the economy,
official media reported on Saturday.
Fuel prices will be capped at 2.18 riyals (58.1 cents) per
litre for the 91 octane grade, and at 2.33 riyals per litre for
the 95 octane variety, effective July 10, according to a decree
issued by King Salman.
Saudi Arabia's annual inflation accelerated for the second
consecutive month in May, reaching 5.7% compared with 5.3% at
the end of April as the prices of food and beverages and
transport rose, according to official statistics.
The government has been working to bring domestic fuel
prices in line with international levels, part of reforms aimed
at easing the burden of subsidies on state finances, improving
energy efficiency and cutting consumption.
Saudi Arabia's economy shrank 4.1% last year, but the
International Monetary Fund expects real GDP, an
inflation-adjusted measure, to grow 2.1% this year as it
recovers from the pandemic's impact.
($1 = 3.750 Saudi riyal)
(Reporting by Ahmad Elhamy
Editing by Helen Popper)