KSA inks deal with auto industry for checking fuel consumption

(MENAFN- Arab News) Prince Abdulaziz bin Salman deputy minister of petroleum and mineral resources says the current fuel consumption of 12 million vehicles exceeds 800000 barrels daily. This will reduce to 500000 by 2030 as 78 automobile companies have agreed to sign a deal on conserving fuel he said while

speaking at the signing of memorandums of understanding (MoUs) with 78 automobile companies here.

Prince Abdulaziz who is also the chairman of the subcommittee for the preparation of the Saudi program for energy efficiency said those global automobile companies agreed to implement Saudi standard for fuel economy in light vehicles. They represent over 99.95 percent of vehicle sales in the Kingdom.

Prince Abdulaziz stressed during the signing of MoUs by the Saudi Standards Metrology and Quality with the global auto industry companies that upon completion of the program for the transport sector up to 300000 barrels per day of gasoline and diesel will be saved by 2030.

According to him Saudi Arabia is one of the countries with high population growth rates (PGR) a steady annual growth rate of 2.7 percent which is projected to reach about 30 million.

The same indicator estimates the continuation of this growth rate through the next decade on the back of the continued socio-economic development taking place in the country.

He noted that the PGR along with geographical and other factors have contributed to the increase in demand for transportation in general and road transport in particular bringing the total distance covered to over 80000 km.

He predicted the vehicle fleet growth to reach over 26 million by 2030 and high daily consumption of gasoline and diesel rate to about 1.86 million barrels if the industry fails to take practical measures to raise the efficiency of energy consumption and check oil wastage.

Referring to energy efficiency program it identifies the factors behind the low efficiency of energy consumption in the road transport sector. The rate of fuel consumption stands at nearly 12 km per liter in the Kingdom compared to about 13 km per liter in the United States 15 km per liter in China and 18 km per liter in Europe.

The signing of such a large number of MoUs is within the framework of the efforts carried out by the Saudi program of energy efficiency which is working on the preparation of the Saudi Center for Energy Efficiency.

Specialists in the program will work to develop an ambitious goal to improve fuel economy in Saudi Arabia by more than 50 percent of total fuel consumption in the road transport sector by the year 2025 bringing the Kingdom on par with the developed countries with similar standards.