Saudi Aramco raised domestic diesel prices by 44% to SAR 1.66 per liter for 2025, following a similar 53% hike to SAR 1.15 per liter last year, according to Mees. This price adjustment is part of Aramco's annual review under its pricing mechanism, established in 2022. The company notified Tadawul-listed industrial firms of the price changes, which took effect on 1 January.

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Companies are going to feel the impact: The higher diesel prices will translate into higher production and operating costs for several petrochemicals, cement, and ceramics players. This includes Saudi Cement, which expects to see its production costs rising 8%, Al Jouf Cement (+10% in its total costs), and Saudi Kayan Petrochemicals (1.3% rise in its cost of sales). Consumer goods players are also expected to see higher production costs, with Al Marai expecting its production costs to rise by SAR 200 mn, in addition to other indirect cost increases from its supply chain. Meanwhile, the Natural Gas Distribution Company says it expects its annual revenues to increase on the back of the diesel price changes.

The price change is one of a small handful of increases that Aramco has enacted for domestic consumers since 2016, EFG Hermes Research noted previously. Price increases were typically limited to SAR 0.11-0.12 per liter — a trend the oil giant snapped in its last price hike last January.

Market reax: Nearly all Tadawul-listed cement and petrochemical companies saw their shares fall at the end of the trading day on Thursday, including Saudi Cement (-2.8%), Arabian Cement (-5.8%), Yamama Cement (-5.3%), Sabic (-0.6%), Chemanol (-3.0%), and Sipchem (-2.4%).

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