Oil-exporting giants bid a tearful farewell to their \"best days\"”

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The drop in international oil prices has caused heavy losses for oil-exporting countries. Although countries such as Saudi Arabia insist on \"not reducing production,\" the economic and financial challenges posed by low oil prices remain unavoidable issues, and the high standards of welfare for citizens in some of these countries are also losing their former glory. Saudi Arabia is considering ending fuel subsidies. Saudi Minister of Oil and Mineral Resources Al-Naimi said on October 27 that the country **is studying measures to eliminate domestic fuel price subsidies, as a way to address the sharp decline in revenues and the huge fiscal deficits caused by falling international oil prices**. When asked by reporters whether energy prices would be raised in the near future, Naimi said, “If you’re asking whether such a plan is under consideration, the answer is yes.” ”This is the first time the Saudi authorities have admitted that they are considering price adjustments. Following the international financial crisis in the past few years, Saudi Arabia **has continued to provide substantial subsidies for domestic energy prices. The retail price of gasoline in Saudi Arabia is currently only 0.6 riyals per liter (approximately 1 yuan), making it one of the lowest gasoline prices in the world. The retail prices of diesel and natural gas are also among the lowest in the world. IMF data shows that Saudi Arabia spends $107 billion annually on domestic energy subsidies. However, low international oil prices have severely impacted Saudi Arabia’s fiscal revenue. The value of oil and gas production accounts for about 50% of Saudi Arabia’s GDP and 85% of its export revenues. At the same time, **about 90% of Saudi Arabia’s fiscal revenue comes from oil sales. The International Monetary Fund (IMF) warns that without changes, Saudi Arabia’s **financial reserves will be exhausted within 5 years. The IMF believes that for Saudi Arabia’s finances to achieve a budget balance, oil prices need to rise to $106 per barrel. Saudi Arabia has hardly prepared sufficient financial buffers to cope with oil prices remaining at $50 per barrel for five consecutive years. Market analysts point out that if Saudi Arabia raises energy prices, it will be one of the biggest economic changes for the country in recent years, as a large number of low-income Saudis rely heavily on low fuel prices. Analysts at NBK Capita believe that Saudi Arabia’s domestic price for natural gas, measured in million British thermal units, will rise from $0.75 to $2 next year; this domestic price has not changed since 1999. The UAE takes measures to cut costs: Also renowned for its high standards of welfare, the UAE is addressing the challenges posed by low oil prices by eliminating energy subsidies and adjusting tax policies. On August 1, the UAE began to lift fuel price controls. The UAE Ministry of Energy announced that it will no longer provide subsidies for energy, and will adopt a new pricing policy that is closely aligned with global energy prices. UAE Energy Minister Suhail Al Mazroui said that this decision will enable the diversification of revenue sources, allowing the UAE to become an economic powerhouse while further reducing its reliance on subsidies. Suhail Al Mazroui also admitted that although eliminating energy subsidies would raise energy prices, it would enable people to use these limited resources more wisely. Fuel prices in the UAE are among the highest in the Gulf**, but they are very low compared to many other parts of the world**, thanks to substantial subsidies. According to the IMF, the UAE spends up to $7 billion annually on fuel subsidies. The UAE’s removal of fuel price controls has led to rising gasoline prices, with an immediate impact on the public. According to a report in the UAE-based Gulf News on August 23, survey results released by YouGov show that about 22% of car owners plan to use public transportation more often; 18% said they will opt for carpooling, shuttle services, or purchase fuel-efficient vehicles with smaller engines. Around 49% said they will reduce the frequency of trips to shopping malls, parks, and other places in order to cut down on fuel costs. Nearly 17% of respondents said they will have to rely on their savings or credit cards to cover the additional expenses.