Saudi Arabia, often called the “Oil Kingdom,” holds a prominent position as a leading oil-producing nation. In 2020, Saudi Arabia’s oil reserves were estimated at around 297.5 billion barrels, constituting approximately 17.2% of the world’s total oil reserves. This represents a substantial quarter of the world’s oil reserves.

Saudi Arabia commenced full-scale oil development in 1938 after discovering significant oil reserves. In the aftermath of World War II, the country initiated oil production with support from U.S. capital.

The global daily crude oil production is approximately 89 million barrels, with Saudi Arabia contributing around 10 million daily. Saudi Arabia accounts for approximately 12% of daily crude oil production.

Saudi Arabia is the world’s leading oil exporter, and its economy is heavily reliant on the oil industry, making it a central pillar of the country’s economic activity.

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The gasoline price in Saudi Arabia is about $0.63 per liter. At that time, it was about $1.34 in South Korea. Diesel was about $0.23 per liter, while it was about $1.29 in South Korea.

Surprisingly, these prices were considered high, causing astonishment. Compared to South Korea, the gas prices in Saudi Arabia are extremely low.

② Gas Prices at Gas Stations are CheapYouTube@Fabien Yoon

A French TV personality, Fabien, recently shared a video of his trip to Saudi Arabia on his YouTube channel. He posted a video titled “Unimaginable Gas Prices in Saudi Arabia.” He was surprised when he went to a gas station to fill up.

The gasoline price at the gas station introduced by Fabien was about $0.63 per liter. Filling up 6.7 liters costs about about $5.71. He said, “It’s cheap because it’s a country with a lot of oil. I’m envious,” causing laughter.

The cost of living in Saudi Arabia, introduced by Fabien, was similar to or more expensive than in South Korea. A single scoop of Baskin Robbins ice cream was about $9.71, and a pint was about $16.84. A shake was about $11.74, much more expensive than in South Korea. A tall-sized Starbucks Americano was about $4.28, more expensive than in South Korea. A meal in Saudi Arabia costs about $8.39 to $16.78.

YouTube@Go Way Woongjin

YouTuber Go Way Woongjin introduced gas prices during his trip to Saudi Arabia. He wondered if the gas in Saudi Arabia was cheaper than water. After arriving at the gas station and checking, the gas price was about $0.61 per liter.

The YouTuber, who checked the gas prices at the gas station, showed a surprised reaction, saying that the gas was cheaper than water. As expected of an oil-producing country, the gas prices were significantly lower. At that time, the gasoline price in South Korea was about $1.32. It was found that the gas prices in Saudi Arabia were about half of those in South Korea.

Saudi Arabia announced a significant welfare policy in 2018. It revealed a large-scale welfare and income support plan for the common people. Given its status as an oil kingdom, there was a lot of interest in Saudi Arabia’s welfare.

The policy paid about $234.94 monthly and $1,190.58 in living allowances to public servants and soldiers, respectively. The cost burdened by the government was estimated to be at least about $11.92 billion) per year.

The Saudi Arabian government provides almost free prices to domestic consumers through an energy subsidy policy. Saudi Arabia is a country where there are almost no direct taxes, such as income taxes and property taxes. However, value-added tax and corporate tax do exist. Also, tuition is entirely free in national and public universities. This has been evaluated as the oil welfare of an oil-producing country.

However, there are dark sides to Saudi Arabia behind the good points. As it operates for free, there are many difficulties in making total investments in universities. Also, because Islam theology is emphasized and censorship and control are severe, it is challenging to learn practical studies. Therefore, although tuition is free in Saudi Arabian universities, many international students choose neighboring countries.

Meanwhile, Saudi Arabia has severe internet censorship and control. There is virtually no freedom of the press.