Humbled by the slumping oil price, Saudi Arabia, long the world's major oil producer, has been forced to take an axe to government spending by slashing a host of subsidies - including the price of oil.

As a result, Saudis will be faced with steep rises in the price of petrol and a host of other charges as a range of government subsidies are reduced.

Saudi Arabia is trying to maintain its share of the global oil market rather than use its power in OPEC to curb US producers. Credit:Bloomberg

The reality check has seen the domestic oil price rise from 0.60 riyal to 0.98 riyal a litre (36¢), which is still around a quarter the price paid at the bowser by most Australian motorists.

Price hikes have been outlined for utilities such as electricity and water, as the country battles slumping revenues thank to the fall in the price of oil, which has collapsed to around $US36 a barrel in recent trading from more than $US100 a barrel as recently as 18 months ago - declining 50 per cent in the past six months alone.