I don't understand how they can do it for 6p a litre? A litre is alot
Then there is the petrol stations cut off that.. so say 4p a litre... how can you possibly sell petrol at that price... oil rig ---> oil refinery ---> petrol plant --> truck to petrol stations...
I have seen breakdowns of the cost of petrol in the UK that indicate the tax to be around 70% of the cost of the fuel. So at 120p per litre, we are talking 84p for the Government - as if the income tax, national insurance, council tax, 1000 x stealth taxes isn't enough for them already. An institute calculated that the average person's annual earnings go to the taxman until mid-May and only then do they get to keep what money they earn until December.
Part of the reason why I am out here - I was on a very good wage in the UK and STILL in debt and even now a year later out here, I am still paying off bits and pieces to creditors... A lot of the expats out here are in the same position and cannot return as they have tax bills etc.. and are paying them off. I would love to come back home and it feels like I am in exile but I need to do this for 5-6 years but by that time hopefully the mortgage will be paid off
Its a bit of a bitter sweet experience I suppose as its very hard for a lot of people back in the UK and in that respect I am very lucky to be in stable employment.
As for the cheap price of fuel in Saudi, the exact price is 0.42 Riyals for a litre of RON 95 and .30 Riyals for 91 RON - of course, the GTI only takes 95 RON. The current exchange rate for a pound to the dollar is 1.58 (it was 1.42 a few months back and the petrol price in Sterling was EVEN LOWER back then! The Saudi Riyal is fixed to the dollar at 3.75 Saudi Riyals to the dollar. So 95 RON works out at 6.9p per litre and 91 RON at 5p per litre. I think the Saudi government subsidies the fuel cost and the refinery costs are lower due to the scale of refing and the cost of living is lower so the forecourt doesn't need to take as much as a UK forecourt, plus the fact that people own vehicles with VERY BIG engines 4.0L is the avergae and don't think twice about leaving the engine running with their driver while they go shopping for an hour or 2 - its hot so the aircon needs to be on all the time. So fuel consumption is a lot greater and forecourts can afford to take a smaller share.
