Monday, May 1 2006 11:42 Hrs (IST) - World Time -

Dubai: Amidst rising international crude oil prices, Saudi Arabia, the world largest oil producer, has slashed petrol prices in the kingdom by more than 30 per cent.

"In order to improve the living standard of citizens and for the public good, we have ordered that the price of one litre of petrol for the consumer be changed to 60 halalas (local currency) instead of 90 halalas until December 31, 2006," the Saudi Press Agency, quoting from a Royal Decree issued by King Abdullah, said.

Diesel prices were also cut from 37 to 25 halalas per litre, the agency said.

A Cabinet meeting also decided that the crude oil prices would be revised every five years in the light of international energy prices.

"The prices will remain the same for 10 years for clients who sign long-term purchasing contracts with Saudi Aramco," the Cabinet said, adding that the period would be calculated from the date on which the contract was signed.