DUBAI: Scores of Saudi Arabian companies said their earnings could be dampened this year as production costs will increase after state energy group Saudi Aramco told them it would sharply raise feedstock and fuel prices.

Companies including Nama Chemicals and Saudi Ceramic said in regulatory filings that they were notified by the energy giant on Wednesday that as of Jan. 1 retail diesel price for 2024 would rise by 53% to 1.15 riyals ($0.3067) per litre, its third increase since 2016.

While it remains low compared US prices of $3.979 a gallon, or $1.051 a litre, as reported by the American Automobile Association, the hike still marks a substantial cost increase.

Qassim Cement, Saudi Aramco Base Oil Co. and Rabigh Refining and Petrochemical were also among companies that warned of the impact of the price increases in regulatory filings late on Wednesday and Thursday.

Natural gas and other fuel prices will also rise but the companies did specify how much. The companies said they could start feeling the impact in the first quarter and were looking for ways to improve efficiencies to offset the rising costs.

Saudi Aramco did not immediately respond to a request for comment when contacted by Reuters on Thursday.

Saudi Arabia’s Tadawul stock index fell 1.6% in early trading on Thursday, weighed down by petrochemical and cement stocks.

The price rises are part of domestic fuel price reforms initiated by Saudi Arabia’s government. The reforms began in 2016 in response to lower oil prices at the time, boosting gasoline, diesel and electricity prices the following year, as the kingdom sought to gradually eliminate energy subsidies.