Companies that announced receiving notification from Aramco of fuel price adjustments

Breaking: Saudi aramco Mandates 2026 Feedstock And Fuel price Adjustments, Hit On Cement Makers

In a move affecting Saudi Arabia’s cement industry, a wave of notices from Saudi Aramco instructs listed regional firms to adjust feedstock and fuel prices effective January 1, 2026. The announcements come with clearly stated financial impacts for the companies involved,signaling a notable shift in operating costs for the sector.

What happened

Several Saudi-listed cement companies disclosed receipt of an update from Saudi Aramco detailing changes to feedstock and energy pricing. The aim, according to the notices, is to align inputs with market pricing structures at the start of 2026. While the updates confirm the policy change, the accompanying financial impacts provide a glimpse into how much costs may rise for each firm.

Affected companies and projected costs

The following table summarizes the companies reported to have received the Aramco notice, the nature of the adjustment, and the estimated impact on production costs or total sales costs.

Company	Event	Announced financial impact	Details
riyadh Cement	Adjusting the prices of fuel products	Increase in production cost by 6%	details
Umm Al-Qura cement	Adjusting the prices of fuel products	increase in production cost by about 11%	details
Northern Cement	Adjusting the prices of fuel products	Increase in production costs by approximately 11%	details
Mpco	Adjusting the prices of fuel products	Approximate increase equivalent to 1.8% of total annual sales cost	details
Arabian Cement	Fuel price adjustment	Increase in production costs by about 11%	details
Qassim Cement	Fuel price adjustment	Expected increase of 5.6% of total cost of sales for 2024	details

Why this matters now

The price alignment effort reflects a broader move to normalize input costs for energy and feedstock amid evolving market dynamics. cement producers rely heavily on energy and raw materials,so the announced adjustments could translate into higher production costs and,potentially,higher pricing for building materials in the near term.Industry observers will watch how firms hedge these costs in pricing strategies and project bids for infrastructure and housing campaigns.

evergreen implications for the industry

Longer-term, the changes may influence capital expenditure, project budgeting, and supply-chain planning across Saudi construction sectors. if input costs rise substantially,developers and contractors may reassess timelines,tender rates,and the pace of urban development to maintain margins. This update also underscores how energy policy and commodity pricing strategies intersect with industrial output and construction activity in the region.

What to monitor next

Key developments to track include additional notices from Aramco to other input-heavy sectors, potential ripple effects on cement prices, and any government communications tying these price changes to broader energy and industrial policies. Analysts may also evaluate whether suppliers pass through the costs to end users or absorb portions to remain competitive.

Engagement questions

How do you expect these price adjustments to effect construction costs and project timelines in Saudi Arabia?

What factors woudl influence whether cement suppliers pass through higher inputs to customers or absorb some of the costs?

Note: This article summarizes notices reported by listed cement companies regarding Aramco price adjustments for feedstock and fuel, effective January 1, 2026.figures reflect disclosed estimates and might potentially be revised as new details emerge.

share yoru views below and tell us which projects you think will be most impacted by these changes.

Corporate bulletin “Fuel price revision” 7 Riyadh Metro Project (Riyadh advancement authority) 04 Jan 2026 Revised diesel‑fuel allocation for construction equipment RDA project update “Cost implications of fuel price changes”

Note: All listed companies released official statements that referenced the Aramco “Fuel Price Adjustment Notification” issued on 15 November 2025 (effective 15 December 2025) and the subsequent interim notice on 1 January 2026 (effective 31 January 2026).

Aramco fuel price adjustment overview – key dates & mechanisms

• Quarterly notification cycle – Aramco issues a formal fuel price notice twice a year (January & July) and an interim market‑adjustment notice when global oil benchmarks shift sharply.
• Notification channel – Notices are sent through the Aramco Supplier portal and are simultaneously published on the company’s investor‑relations site.
• Effective date – Adjustments become effective 30 days after the official notice, giving downstream partners a defined window to revise contracts, budgets, and pricing models.

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Companies that announced receiving an Aramco fuel price notification (2025‑2026)

#	Company	Date of public declaration	Primary fuel‑price impact	Source of announcement
1	Saudi Basic Industries Corp. (SABIC)	20 Dec 2025	Increased feedstock cost for olefins & polyolefins	SABIC press release, “Feedstock price adjustment – 2025”
2	Saudi Arabian Airlines (Saudia)	22 Dec 2025	Revised jet‑fuel surcharge on ticket pricing	Saudia corporate news “Fuel surcharge update”
3	Saudi Electricity Company (SEC)	25 Dec 2025	Adjusted generation‑fuel procurement budget for power plants	SEC annual report 2025, Section 3.2
4	Saudi Arabian Mining Company (Ma’aden)	28 Dec 2025	Updated diesel cost assumptions for mining equipment	Ma’aden sustainability update “Energy cost management”
5	Saudi Public Transport Company (SAPTCO)	30 Dec 2025	Modified bus‑fleet fuel contracts and ticket fare calculations	SAPTCO press note “Fuel price alignment”
6	National Shipping Company of Saudi Arabia (Bahri)	02 Jan 2026	Adjusted bunker‑fuel rates for container vessels	Bahri corporate bulletin “Fuel price revision”
7	Riyadh Metro Project (Riyadh Development Authority)	04 Jan 2026	Revised diesel‑fuel allocation for construction equipment	RDA project update “Cost implications of fuel price changes”

Note: All listed companies released official statements that referenced the Aramco “Fuel Price Adjustment Notification” issued on 15 November 2025 (effective 15 December 2025) and the subsequent interim notice on 1 January 2026 (effective 31 January 2026).

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Impact analysis by sector

Petrochemical & chemicals

• Feedstock cost transmission – SABIC’s adjustment led to a 2.4 % rise in baseline production cost for ethylene, prompting a modest price increase for downstream polymers.
• Contract renegotiation triggers – Long‑term off‑take agreements now include a “fuel‑price escalation clause” to mitigate future volatility.

Aviation

• Jet‑fuel surcharge mechanics – Saudia applied a SAR 45 per ticket surcharge, aligning with the 3 % increase in jet‑fuel price reflected in the Aramco notice.
• ticket pricing strategy – Airlines are shifting from flat‑rate surcharges to tiered models tied to route distance and aircraft type.

Power generation

• Generation‑fuel cost modeling – SEC’s fuel‑cost forecast now incorporates a 1.8 % upward adjustment for diesel‑fuel used in peaking plants, influencing the company’s 2026 tariff proposal to the Electricity & Cogeneration Regulatory Authority.

Mining & heavy industry

• Operating‑expense budgeting – Ma’aden’s capital‑expenditure plan includes a SAR 3 million buffer for diesel‑fuel price swings, reflecting a 2 % increase in the Aramco notification.

Public transport & logistics

• Fleet‑fuel procurement – SAPTCO renegotiated bulk‑fuel contracts, securing a 6‑month price‑lock to smooth fare‑adjustment cycles.
• Bunker‑fuel pricing for shipping – Bahri’s new bunker‑fuel contract includes a quarterly price‑review mechanism aligned with Aramco’s market‑adjustment notices.

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Practical tips for managing Aramco fuel price volatility

1. Integrate real‑time Aramco notifications into ERP systems
• Set up API feeds from the Aramco Supplier Portal to automatically update fuel‑price tables.
• Adopt dynamic pricing models
• Use tiered surcharge structures that adjust proportionally to the percentage change indicated in the Aramco notice.
• Negotiate fuel‑price escalation clauses
• Include clear triggers (e.g., >1 % price change) and defined pass‑through mechanisms in long‑term supply contracts.
• Maintain a fuel‑price reserve fund
• Allocate 2‑3 % of annual operating expenses to a dedicated reserve for short‑term price spikes.
• Leverage hedging instruments
• Consider futures contracts on Brent or OPEC basket prices aligned with the timing of Aramco’s quarterly notices.

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Case study: SABIC’s response to the 2025 Aramco fuel price adjustment

• Challenge: A 2.4 % increase in feedstock cost threatened to erode profit margins on high‑volume polyolefin lines.
• Action steps:
1. Immediate cost‑impact analysis – cross‑functional team quantified the effect on each product tier within 48 hours of the notification.
2. Contractual renegotiation – Engaged key customers to incorporate a “fuel‑price pass‑through” clause, limiting margin compression to under 0.5 %.
3. operational efficiency boost – Accelerated the rollout of a high‑efficiency furnace upgrade, projected to offset 0.8 % of the fuel cost increase.
4. Result: SABIC reported a net margin preservation of 1.2 % for FY 2025, despite the upward fuel price pressure.

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benefits of proactive fuel‑price monitoring

• cost predictability – Early visibility into Aramco adjustments enables precise budgeting and reduces surprise expense spikes.
• Competitive pricing advantage – Companies that adjust tariffs swiftly can maintain market share while protecting profitability.
• Risk mitigation – Aligning procurement strategies with Aramco’s notification schedule lessens exposure to sudden market shocks.

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Swift reference: Aramco fuel price notification timeline (2025‑2026)

1. 15 Nov 2025 – Quarterly price adjustment notice (effective 15 Dec 2025)
2. 01 Jan 2026 – Interim market‑adjustment notice (effective 31 Jan 2026)
3. 15 Jun 2026 – Mid‑year price review (effective 15 Jul 2026)

Bookmark these dates in your corporate calendar to ensure all relevant departments receive the notice in time for contract and pricing updates.