Pressured by low oil prices and costly wars in the Middle East, Saudi Arabia announced a sharp reduction in its 2016 budget on Monday to control a worsening deficit, which is steadily draining the kingdom’s financial reserves.

The official Saudi news media reported that the Finance Ministry would cut spending, adopt new taxes and reduce price subsidies for fuel, water and power.

The cost of some grades of domestic gasoline, among the first to be affected, could rise as much as 50 percent, a potentially unsettling spike in a country where mass transit does not exist and cars are a basic necessity.

The Saudi stock market fell 3 percent in early trading on Tuesday, with Saudi Basic Industries, the biggest petrochemical producer, tumbling 8.3 percent.