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2026-11-03T00:08:42.000Z

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Farm Fuel Math vs Reality

Farm Fuel Math vs Reality

The agricultural sector contributes more than SAR 100 billion to Saudi Arabia’s GDP, while agriculture globally accounts for more than 20% of greenhouse gas emissions. The Liquid Fuel Displacement Program aims to phase out the equivalent of around one million barrels per day by 2030 and cut liquid-fuel consumption by 95%, as part of the path to net zero by 2060. The writer warns that removing diesel subsidies before the electricity grid was ready and adequate coordination was in place drove up farmers’ costs and delayed access to electricity. This, in turn, reduced production, forced some small and medium-sized farms to shut down, and contributed to grid failures. Some farmers turned to solar power despite the high upfront costs. The writer attributes these problems to a lack of confidence in the viability of small and medium-sized agricultural projects, and to decisions made without sufficient study or consultation with those affected. The writer calls for the relevant authorities’ responsibility for farmers’ losses to be examined.

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