Saudi King Slashes Domestic Gas Prices

RIYADH, Saudi Arabia (AP) -- With gasoline prices at historic highs in the United States and some other Western countries, Saudi King Abdullah issued a decree Sunday lowering domestic gasoline prices by about 25 percent.

The decrease will reach 30 percent by year's end, according to a government statement.

The drop in prices means Saudis now will pay 60 halalahs per liter of regular gasoline. There are 100 halalahs in the Saudi riyal, which is worth about 26 U.S. cents.

The statement said the king issued the decree to ease the "cost of living burden on Saudi citizens."

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 $3 in some regions.

Saudi Arabia has the world's largest known reserves of crude oil and is the current largest oil producer.

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