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Arabian King Cuts Gas Prices

While Americans are paying record highs at the pump, Saudi Arabian citizens are getting a big break on already low gas prices. Saudi King Abdullah has announced that his kingdom is slashing gasoline prices by about 25 percent. The decrease means Saudis will pay the rough equivalent of 65 cents a gallon for gas.

A Saudi government statement says the decrease will reach 30 percent by year`s end. The big reduction in gasoline prices in the world`s largest oil-producing nation was announced as prices in oil importing nations reached record levels and oil company profits soared to all-time highs.

The price of a gallon of regular gasoline in the United States now tops three dollars in some areas. Saudi Arabia has the world`s largest known reserves of crude oil and is the current largest oil producer. Thus, oil and gas prices for residents have usually been low, even while much of the populace hasn`t always seen the benefits under the rule of the House of Saud.