Saudi Arabia is studying the possibility of raising domestic energy prices, according to Petroleum and Mineral Resources Minister Ali Al-Naimi.

The kingdom is under pressure to reform its subsidies policies due to the fall in oil revenues since the sharp drop in crude prices a year ago.

“What you are asking is: is it under study? And the answer is yes,” Al-Naimi told reporters on the sidelines of the Saudi Mining & Minerals conference in Riyadh on 27 October.

The comment was the first public confirmation that the Saudi government is considering domestic energy reforms.

Riyadh heavily subsidies gasoline and diesel, as well as gas feedstock for its domestic petrochemicals and metals industries.

Earlier this year, the UAE became the first GCC country to deregulate gasoline and diesel prices in an effort to reduce spending.